Home / Knowledge / News / Textiles / Hancock Fabrics earnings improve by $1.5 mn for Q2
Hancock Fabrics earnings improve by $1.5 mn for Q2
26
Aug '10
Hancock Fabrics, Inc. announced financial results for its second quarter and first half of fiscal 2010.

Financial highlights for the second quarter include:

• Net sales for the quarter were $60.5 million compared to $59.6 million for second quarter of last year, comparable store sales increased 0.7% compared to a 4.2% decrease in the previous year.
• Operating income for the quarter increased by $1.3 million as a result of $0.6 million of operating income in the quarter compared to an operating loss of $0.7 million in the second quarter last year.
• Earnings per share improved by $0.08, or $1.5 million with a net loss of $0.8 million, or $0.04 per basic share, in the second quarter of 2010 compared to a loss of $2.3 million, or $0.12 per basic share in the second quarter of 2009.
• Adjusted EBITDA for the quarter increased $1.4 million or 157% to $2.2 million.
• At quarter end, the Company had outstanding borrowings under its revolving line of credit of $24.4 million and outstanding letters of credit of $8.2 million. Additional amounts available to borrow under its revolving line of credit at the end of the quarter were $38.2 million. The balance of the Company's subordinated debt was $21.6 million at quarter end, and the unamortized warrant discount on this debt was $7.0 million.

First half financial highlights include:

• Net sales for the first half were $123.6 million compared to $123.7 million in the first half of last year, and comparable store sales decreased 0.7%, compared with a 0.9% decrease in the previous year.
• Operating income for the first half increased by $0.7 million as a result of the $0.6 million of operating income compared to a $0.1 million operating loss in the previous year.
• Net loss was $2.1 million, or $0.10 per basic share, in the first half of 2010, compared to a net loss of $3.2 million, or $0.16 per basic share in the first half of 2009 - an improvement of $1.1 million or $0.06 per basic share.
• Adjusted EBITDA has increased by $0.7 million to $3.8 million in the first half of 2010 - a 24% increase over the same period in 2009.

Jane Aggers, President and Chief Executive Officer noted, "We are encouraged by the sales increase and resulting earnings improvement of the second quarter. We have accelerated the receipt of fall and holiday merchandise and continue to improve our operations in order to ensure we are prepared for the back half of the year. Our expectation is to maintain the momentum gained during the first half and we are looking forward to the third and fourth quarter."

Operating Results
Gross margin for the quarter of 47.7% was a 190 basis point increase over the 45.8% of the prior year. This increase reflects a 50 basis point decrease in merchandise costs and a 130 basis point improvement in sourcing and warehousing expenses.

For the first half, gross margin increased by 30 basis points to45.8%. This increase consists of a 50 basis point increase in the cost of merchandise and a 10 basis point increase in freight costs offset by a 90 basis point reduction in sourcing and warehousing expenses.


Must ReadView All

ITC, ICS tie up to help Moroccan textile value chain

Textiles | On 21st Apr 2018

ITC, ICS tie up to help Moroccan textile value chain

The International Trade Centre (ITC) has partnered with ICS, which...

Bangladesh garment manufacturers call for fair pricing

Apparel/Garments | On 21st Apr 2018

Bangladesh garment manufacturers call for fair pricing

Bangladesh garment manufacturers want a ‘commensurate adjustment’ by...

Pak ministry proposes extension to PM package for 2018-19

Textiles | On 21st Apr 2018

Pak ministry proposes extension to PM package for 2018-19

Pakistani textile ministry has reportedly proposed extending the...

Interviews View All

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Headhonchos
Indian textile value chain

'One nation, one tax' is a great concept

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Nitesh Mittal

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

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Eamonn Tighe
Nature Works LLC

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

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Igor Chapurin
Chapurin

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

Ritu Kumar
Label Ritu Kumar

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

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