Hancock Fabrics records more losses
BALDWYN — Hancock Fabrics Inc. has released its financial results for its second quarter ended July 30, 2011 and its first half of fiscal 2011.
Financial results for the second quarter include:
• Net sales were $57.8 million, compared to $60.5 million for second quarter of last year, and comparable store sales decreased 4.1 percent, compared to a 0.7 percent increase in the previous year.
• Operating loss was $2.7 million, compared to operating income of $0.6 million in the second quarter last year.
• Net loss was $3.9 million, or $0.20 per basic share, compared to a net loss of $0.8 million, or $0.04 per basic share, in the second quarter of fiscal 2010.
First half financial results include:
• Net sales were $119.8 million, compared to $123.6 million in the first half of last year, and comparable store sales declined 2.7 percent following a 0.7 percent decrease in the previous year.
• Operating loss was $3.7 million, compared to $0.6 million of operating income in the previous year.
• Net loss was $6.1 million, or $0.31 per basic share, compared to a net loss of $2.1 million, or $0.10 per basic share in the first half of fiscal 2010.
Steve Morgan, interim president and CEO said, “The second quarter numbers were negatively influenced by the lack of buying strategies implemented in the summer of last year. Fabric inventory levels today are down very significantly year over year despite adding a considerable craft assortment in approximately 25 percent of our stores. These reduced fabric levels have delayed the income improvements we are anticipating will be provided by the various operating initiatives we are currently executing. We have remedied a portion of the inventory imbalance with receipts that are just now beginning to flow into our stores. Our recently installed merchandise team is making progress in correcting the missed buys of last year.”
During the quarter, the company opened one new location and relocated three stores, ending the quarter with 265 stores.
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