Hancock Fabrics reports decreased sales, loss

BALDWYN — Hancock Fabrics Inc., for its first quarter ended April 30, saw net sales of $62.0 million, compared to $63.1 million for the first quarter of last year. Comparable store sales decreased 1.3 percent, compared to a 2.0 percent decrease in the first quarter of last year.

The operating loss for the quarter was $1.0 million, compared to break-even for the previous year’s first quarter.

Adjusted EBITDA totaled $600,000, a decrease of $1.0 million over the first quarter of fiscal 2010.

Steven R. Morgan, interim president and CEO, said, “Our first quarter results were impacted by the investment required to focus on the areas we outlined at the end of the fiscal year. We have made significant progress during the quarter in improving our store presentation, refining our craft business, refocusing our merchandise organization and expanding our replenishment process. We have also undertaken the liquidation of our aged products. While these activities have come at an initial short term cost, we are positioning our organization for improved fall and winter seasons.”

Source: Hancock Fabrics