Home / Knowledge / News / Textiles / Operating income up at Hancock Fabrics in Q3
Operating income up at Hancock Fabrics in Q3
12
Dec '11
Hancock Fabrics Inc. announced financial results for its third quarter and first thirty-nine weeks of fiscal 2011.

Financial results for the third quarter include:
• Net sales for the quarter were $70.8 million compared to $73.5 million for third quarter of last year, and comparable store sales decreased 3.5% compared to a 0.3% increase in the previous year.
• Operating income for the quarter was $1.2 million compared to $2.8 million in the third quarter last year.
• Net income was effectively zero, or $0.00 per basic share, in the third quarter of fiscal 2011 compared to a net income of $1.4 million, or $0.07 per basic share in the third quarter of fiscal 2010.
• At quarter end, the Company had outstanding borrowings under its revolving line of credit of $34.9 million and outstanding letters of credit of $6.2 million. Additional amounts available to borrow under its revolving line of credit at the end of the quarter were $42.2 million. The balance of the Company's subordinate debt was $21.6 million at quarter end, and the unamortized warrant discount on this debt was $4.1 million.

First thirty-nine weeks financial results include:
• Net sales for the first thirty-nine weeks of 2011 were $190.6 million compared to $197.0 million in the first thirty-nine weeks of last year, and comparable store sales declined 3.0%, following a 0.3% decrease in the previous year.
• Operating loss for the first thirty-nine weeks was $2.5 million compared to $3.4 million of operating income in the previous year.
• Net loss was $6.1 million, or $0.31 per basic share, in the first thirty-nine weeks of fiscal 2011, compared to a net loss of $0.7 million, or $0.04 per basic share for the same period of fiscal 2010.

Steve Morgan, President and Chief Executive Officer commented, "Our third quarter continued to be difficult as previously predicted despite our efforts to remediate our inventory challenges created by missed buys in the 3rd and 4th quarters of 2010, which we now feel we have finally overcome. Notwithstanding our third quarter results, we are encouraged by the results of the fourth quarter and holiday season thus far.“

“Our comp store sales are up for the first 5 weeks of the fourth quarter and have trended similarly since Black Friday. November is the first month in over a year that we had an increase in same store sales. We will seek to continue this momentum through the fourth quarter and into next year now that the missed merchandise issues have been resolved."

Operating Results
Gross margin for the quarter declined by 40 basis points to 43.5% compared to 43.9% in the prior year. This is the result of increases of 100 basis points in merchandise costs and 40 basis points in freight costs offset by a 100 basis point decline in sourcing and warehousing expenses.

For the first thirty-nine weeks, gross margin decreased by 130 basis points to 43.8%. A 70 basis point increase in the cost of merchandise, a 50 basis point increase in freight costs and 10 basis points of additional sourcing and warehousing expenses drove this change.


Must ReadView All

Global economic upswing became broader & stronger: IMF

Textiles | On 19th Apr 2018

Global economic upswing became broader & stronger: IMF

The global economic upswing that began around mid-2016 has become...

Courtesy: ITMA

Textiles | On 19th Apr 2018

ITMA 2019 expanding space due to overwhelming response

Due to overwhelming response, the exhibition space has been increased ...

BIDA’s Europe trip to showcase a different Bangladesh

Apparel/Garments | On 19th Apr 2018

BIDA’s Europe trip to showcase a different Bangladesh

The Bangladesh Investment Development Authority (BIDA) is taking a...

Interviews View All

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search