Home / Knowledge / News / Textiles / Hancock Fabrics net income increases by $3.4 mn
Hancock Fabrics net income increases by $3.4 mn
03
Dec '09
Hancock Fabrics Inc announced financial results for its third quarter ended October 31, 2009, and year-to-date for fiscal 2009.

Financial highlights for the third quarter include:

Net sales for the quarter were $72.7 million compared with $70.6 million in the third quarter last year, and comparable same store sales increased 4.0%, compared with a 2.1% increase in the previous year.

Operating income for the quarter increased by $3.6 million as a result of a $4.5 million profit in this quarter compared to a $0.9 million profit in the previous year's third quarter.

Net income was $3.0 million, or $0.16 basic earnings per share, in the third quarter of fiscal 2009, compared to a net loss of $0.3 million, or $0.02 loss per share in the third quarter of fiscal 2008.

EBITDA for the quarter was $6.1 million, an increase of $3.5 million over the same period last fiscal year.
Inventories have been reduced by $10.0 million compared to the same period last year.

At quarter end, the Company had outstanding borrowings under its Revolver of $25.0 million and outstanding letters of credit of $6.0 million. The Note balance was $21.6 million and the warrant discount on the Notes was $8.8 million. Additional amounts available to borrow at that time were $43.1 million.

Year-to-date financial highlights include:

Net sales year-to-date were $196.4 million compared with $198.2 million in the year-to-date last year, and comparable same store sales increased 0.9%, compared with a 2.9% increase in the previous year.

Operating income year-to-date increased by $8.0 million as a result of the $4.4 million of income in 2009 compared to a $3.6 million loss in 2008.

Net loss was $0.1 million, or $0.01 per share, in year-to-date for fiscal 2009, compared to a net loss of $16.5 million, or $0.87 per share for fiscal 2008 year-to-date.

EBITDA for year-to-date fiscal 2009 was $9.2 million, an increase of $7.8 million over the same period last fiscal year.

Jane Aggers, President and Chief Executive Officer commented, “We are beginning to experience meaningful top line improvement in combination with significant operating cost reductions. Our strong quarter and year to date results are a testament to the hard work of all of our associates and management team. We are cautiously optimistic that we can continue to execute our business plan throughout the remainder of the year and into 2010.”

Operating Results

Gross margin for the third quarter of 46.5% was a 350 basis point improvement over the 43.0% of the prior year. This increase reflects a 220 basis point reduction in merchandise cost, a 50 basis point reduction in freight costs, and an 80 basis point reduction in sourcing and warehousing. Year-to-date, gross margin improved by 210 basis points to 45.8%. This improvement was driven by the same fundamentals that drove third quarter improvements.

Must ReadView All

Apparel/Garments | On 28th May 2017

Over 45% US retailers to use AI in next 3 years: Report

Over 45 per cent retailers in the US plan to utilise artificial...

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Apparel/Garments | On 28th May 2017

Naked Brand, Bendon sign agreement to reorganise

Naked Brand Group, a fashion and lifestyle brand, and Bendon Limited, ...

Interviews View All

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Amit Jain
Shingora Textiles Ltd

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

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Eamonn Tighe
Nature Works LLC

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

Ritu Kumar
Label Ritu Kumar

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

Madhu Jain
Madhu Jain

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

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


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