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

Sri Lanka to set up 150 mini apparel units

Apparel/Garments | On 23rd Nov 2017

Sri Lanka to set up 150 mini apparel units

A mini apparel factory was opened recently at Sri Lanka’s Menik Farm...

Japanese stores witness dip in apparel sales in October

Apparel/Garments | On 23rd Nov 2017

Japanese stores witness dip in apparel sales in October

Sales of apparel, both in department stores and in retail chain...

Courtesy: Guess

Apparel/Garments | On 23rd Nov 2017

Guess Q3 2018 revenue up 3%

The net revenue of American clothing brand and retailer Guess for the ...

Interviews View All

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Abhishek Pachauri

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

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Hardik Sanghvi

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

Kai Poehler
Voith Paper GmbH & Co. KG

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

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Larry L Kinn
Suominen Corporation

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

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

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

November 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
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

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
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

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
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

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
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


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