Home / Knowledge / News / Textiles / Hancock Fabrics Q2 earnings increase by $8.6 mn
Hancock Fabrics Q2 earnings increase by $8.6 mn
27
Aug '09
Hancock Fabrics Inc announced financial results for its second quarter and first half of fiscal 2009.

Financial highlights for the second quarter include:

• Net sales for the quarter were $59.6 million compared with $63.8 million in the second quarter last year, and comparable sales decreased 4.2%, compared with a 10.8% increase in the previous year.
• Operating income for the quarter increased by $1.6 million as a result of a $0.7 million loss in this quarter compared to a $2.3 million loss in the previous year's second quarter.
• Net loss was $2.3 million, or $0.12 per share, in the second quarter of fiscal 2009, compared to a net loss of $10.9 million, or $0.57 per share in the second quarter of fiscal 2008.
• EBITDA for the quarter was $0.9 million, an increase of $1.5 million over the same period last fiscal year.
• Inventories have been reduced by $4.2 million since fiscal year end and $17.4 million compared to the same period last year.
• At quarter end, the Company had outstanding borrowings under its Revolver of $30.5 million and outstanding letters of credit of $6.5 million. The Note balance was $21.6 million and the warrant discount on the Notes was $9.3 million. Additional amounts available to borrow at that time were $30.9 million.

First half financial highlights include:

• Net sales for the first half were $123.7 million compared with $127.6 million in the first half of last year, and comparable sales decreased 0.9%, compared with a 3.3% increase in the previous year.
• Operating income for the first half increased by $4.4 million as a result of the $0.1 million loss in this first half compared to a $4.5 million loss in the previous year's first half.
• Net loss was $3.2 million, or $0.16 per share, in the first half of fiscal 2009, compared to a net loss of $16.2 million, or $0.85 per share in the first half of fiscal 2008.
• EBITDA for the first half was $3.1 million, an increase of $4.3 million over the same period last fiscal year.

Jane Aggers, President and Chief Executive Officer commented, “Despite a very challenging retail environment and lower revenue, our year over year results of operations have improved dramatically. This is the result of lowering our SG&A costs and improved management of the balance sheet. Since exiting from bankruptcy on August 1, 2008, we have paid down approximately $27.5 million of debt and pre-petition liabilities. As we further refine our internal planning and operational processes we are optimistic we can combine our cost reduction initiatives with a meaningful top line improvement.”

Gross margin for the second quarter of 45.8% was a 240 basis point improvement over the 43.4% of the prior year. This increase reflects a 200 basis point reduction in merchandise cost and a 60 basis point reduction in freight costs offset by reduced supply chain leverage as inventory levels have diminished from prior periods. For the first half, gross margin improved by 140 basis points to 45.5%. This improvement was driven by the same fundamentals that drove second quarter improvements.

Must ReadView All

Courtesy: AWI

Textiles | On 20th Jan 2017

Australian wool EMI at highest ever level in Au$ terms

The Eastern Market Indicator (EMI) managed to forge ahead by a...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Textiles | On 20th Jan 2017

Xeros to focus on textile sector to develop technology

Xeros technology group plc, the developer and provider of patented...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Eamonn Tighe
Nature Works LLC

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

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Jay Ramrakhiani
Occasions Elegance Wear

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

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search