Home / Knowledge / News / Textiles / Net loss climbs 27% at Hancock Fabrics in Q2FY15
Net loss climbs 27% at Hancock Fabrics in Q2FY15
11
Sep '14
Net loss climbed nearly 27% from a year earlier at Hancock Fabrics, Inc., a retailer of fabrics, sewing materials, etc, in its second fiscal quarter ended July 26, 2014.

Hancock reported a net loss of $3.3 million, or negative $0.16 per basic share in second quarter of 2014 compared to a net loss of $2.6 million, or negative $0.13 per basic share in the second quarter of 2013.

Net sales for the second quarter of 2014 were nearly flat at $59.3 million compared to $59.1 million for second quarter of last year, while comparable store sales increased 0.9%.

Gross profit for the second quarter of 2014 declined 30 basis points to 44.6% as compared to 44.9% for the second quarter of the prior year.

Selling, general and administrative expenses (SG&A) for the second quarter of 2014 rose by $560,000 or 80 basis points as a percentage of sales from the same period of 2013.

Hancock said the increase in SG&A expenses was primarily related to an increase in health benefit related costs and professional fees.

Operating loss for the second quarter of 2014 went up to $1.9 million versus a loss of $1.3 million in the second quarter last year, again primarily driven by health benefit related costs and professional fees, Hancock informed.

The biggest setback to the second quarter of 2014 financials was noticed in EBITDA, a non-GAAP measure, which skyrocketed more than ten times to reach a loss of $685,000 against a loss of $63,000 for the same period last year.

At the end of the second quarter, Hancock Fabrics had outstanding borrowings under its revolving line of credit of $67.0 million, a term loan balance of $15.0 million and outstanding letters of credit of $6.4 million.

Additional amounts available to borrow under its revolving line of credit at the end of the quarter were $10.5 million and the balance of its subordinated debt stood at $8.2 million at the end of second quarter of 2014.

CEO Steve Morgan said, “As with most retailers, our first half sales and margin results were negatively impacted by the unusually bad weather early in the year but that is now behind us and we see good opportunity going forward.”

Morgan continued, “As we move into the second half of the year, we will continue to focus on maintaining the large margin gains from the prior year. We will accelerate our focus on expense management look to keep decreasing expenses going forward. ” (AR)

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 18th Aug 2017

Turkey imposes temporary duty on POY from 7 countries

Turkish ministry of economy has announced imposition of provisional...

Textiles | On 18th Aug 2017

GST return filing deadline for transitional credit

For businesses who want to avail the transitional input tax credit...

Apparel/Garments | On 18th Aug 2017

AEPC wants clarity on minimum wages for garment sector

The Apparel Export Promotion Council (AEPC) has urged the Indian...

Interviews View All

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Amit Jain
Shingora Textiles Ltd

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

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Lynda Kelly
Suominen Corporation

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

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

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

August 2017

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
66.7%
No
16.7%
Skip
16.7%

Total Votes: 30

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
43.3%
No
36.7%
Skip
20.0%

Total Votes: 30

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
83.3%
No
6.7%
Skip
10.0%

Total Votes: 30

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
60.0%
No
10.0%
Skip
30.0%

Total Votes: 30


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