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Hancock Fabrics' losses narrow

BALDWYN — Hancock Fabrics Inc. has released its financial results for the second quarter and first half of fiscal 2009.

Financial highlights for the second quarter include:

• Net sales were $59.6 million compared with $63.8 million in the second quarter last year, and comparable sales decreased 4.2 percent compared with a 10.8 percent increase in the previous year.

• Operating income increased by $1.6 million as a result of a $700,000 loss in this quarter compared to a $2.3-million loss in the previous year’s second quarter.

• Net loss was $2.3 million, or $0.12 per share, compared to a net loss of $10.9 million, or $0.57 per share in the second quarter of fiscal 2008.

First half financial highlights include:

• Net sales were $123.7 million compared with $127.6 million in the first half of last year, and comparable sales decreased 0.9 percent compared with a 3.3 percent increase in the previous year.

• Operating income increased by $4.4 million as a result of the $100,000 loss in this first half compared to a $4.5-million loss in the previous year’s first half.

• Net loss was $3.2 million, or $0.16 per share, compared to a net loss of $16.2 million, or $0.85 per share in the first half of fiscal 2008.

Jane Aggers, president and CEO of Hancock Fabrics, said, “Despite a very challenging retail environment and lower revenue, our year-over-year results of operations have improved dramatically. This is the result of lowering our SG&A costs and improved management of the balance sheet. Since exiting from bankruptcy on Aug. 1, 2008, we have paid down approximately $27.5 million of debt and pre-petition liabilities. As we further refine our internal planning and operational processes, we are optimistic we can combine our cost reduction initiatives with a meaningful top line improvement.”

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