Hancock Fabrics cuts loss, improves sales in Q2
BALDWYN, Miss. — Hancock Fabrics reported that net sales for the second quarter increased 5% to $60.5 million from $57.8 million for second quarter of last year, and comparable-store sales improved by 5%.
Earnings per share increased by 3 cents, or $0.6 million with a net loss of $3.3 million, or 17 cents per basic share, in the second quarter of fiscal 2012 compared to a net loss of $3.9 million, or 20 cents per basic share in the second quarter of fiscal 2011.
Net sales for the first half of 2012 increased by $4.6 million to $124.4 million compared to $119.8 million in the first half of last year, and comparable-store sales improved by 4.3%.
Net loss was $5.7 million, or 29 cents per basic share, in the first half of fiscal 2012, compared with a net loss of $6.1 million, or 31 cents per basic share in the first half of fiscal 2011.
Steve Morgan, president and CEO commented, “The second quarter numbers are encouraging and in line with our expectations based on the initiatives we have been putting into place for this past year. We are about to complete our 10th consecutive month of positive comparable store sales. Along with the approximately $4 million of expense cuts we initiated in April, and in spite of the increasingly promotional nature of our business, we continue to feel confident in our direction for the balance of the year.”
During the quarter, the company relocated three stores for a total of five stores relocated in the first half of 2012, ending the quarter with 263 stores. The company currently operates 263 retail stores in 37 states and an Internet store at www.hancockfabrics.com.