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

Courtesy: Kai Pilger from Pexels

Textiles | On 24th Apr 2018

Pakistan’s textile exports up 7.77% in July-March FY18

The value of textile and garment exports from Pakistan increased by...

Alliance to form joint entity for safety in factories

Apparel/Garments | On 24th Apr 2018

Alliance to form joint entity for safety in factories

On the 5th anniversary of the Rana Plaza Collapse, The Alliance for...

China’s Alibaba partners with Thailand for digital trade

Textiles | On 24th Apr 2018

China’s Alibaba partners with Thailand for digital trade

China’s Alibaba Group recently signed an agreement with the Thai...

Interviews View All

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Top executives
Textile industry, India

The event should be organised every year

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Tony Ward
Tony Ward

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

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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