Hancock Fabrics records loss

BALDWYN — Hancock Fabrics Inc., for its first quarter ended May 1, 2010. saw net sales for the quarter were $63.1 million, compared to $64.1 million for first quarter of last year, and comparable store sales decreased 2 percent, compared to a 2.3% increase in the previous year.

Operating income was $17,000 in the quarter, compared to $600,000 in the first quarter last year.

Net loss was $1.3 million, or $0.07 per basic share, in the first quarter of fiscal 2010, compared to a loss of $900,000 million, or $0.05 per share in the first quarter of fiscal 2009.

Adjusted EBITDA for the quarter was $1.6 million, a decrease of $600,000 over the same period last fiscal year.

Jane Aggers, president and CEO, said, “While our results for the quarter were below our expectations, we made significant progress in remedying merchandising and inventory issues carried forward from last year. This resulted in a temporary impact on gross margins for the quarter. Store revenues began the quarter slowly but have steadily increased through the end of the quarter and this trend has continued into the second quarter.”