Home / Knowledge / News / Textiles / Comparable store sales drop at Hancock Fabrics
Comparable store sales drop at Hancock Fabrics
13
Jun '11
Hancock Fabrics Inc announced financial results for its first quarter ended April 30, 2011.

Financial summary for the first quarter include:

• Net sales for the quarter were $62.0 million compared to $63.1 million for the first quarter of last year. Comparable store sales decreased 1.3% compared to a 2.0% decrease in the first quarter of last year.
• Operating loss for the quarter was $1.0 million, compared to break-even for the previous year's first quarter.
• Adjusted EBITDA totaled $0.6 million, a decrease of $1.0 million over the first quarter of fiscal 2010.
• Net inventories have been reduced by $6.3 million compared to the same period last year, ending the quarter at $86.7 million.
• At quarter end, the Company had outstanding borrowings under its revolving line of credit of $12.6 million, which is a reduction of $1.1 million compared to the end of the first quarter of fiscal 2010. Additional amounts available to borrow under its revolving line of credit at the end of the quarter were $42.6 million. At quarter end, the balance of the Company's Floating Rate Secured Notes was unchanged at $21.6 million and the warrant discount on the Notes was $5.3 million.

Steven R. Morgan, Interim President and Chief Executive Officer commented, "Our first quarter results were impacted by the investment required to focus on the areas we outlined at the end of the fiscal year. We have made significant progress during the quarter in improving our store presentation, refining our craft business, refocusing our merchandise organization, and expanding our replenishment process. We have also undertaken the liquidation of our aged products. While these activities have come at an initial short term cost, we are positioning our organization for improved fall and winter seasons."

Operating Results

Gross margin for the quarter of 44.2% was a 30 basis point improvement compared to the 43.9% of the prior year's first quarter. This increase reflects a 120 basis point reduction in merchandise cost offset by a 20 basis point increase in freight costs and a 70 basis point increase in sourcing and warehousing.

Selling, general and administrative expenses for the quarter have increased by $0.7 million to $27.3 million (44.1% of sales) from $26.6 million (42.2% of sales) last year. Increases have been driven by additional investment in initiatives to improve our store standards in preparation for the second half of the year.

Store Openings, Closings and Remodels

During the quarter, the Company closed one store and ended the quarter with 264 stores.

Hancock Fabrics, Inc. is committed to being the inspirational authority in fabric and sewing, serving creative enthusiasts with a complete selection of fashion and home decorating textiles, sewing accessories, needlecraft supplies and sewing machines. The Company currently operates 264 retail stores in 37 states and an Internet store.

Hancock Fabrics Inc


Must ReadView All

Courtesy: American Silk Mills

Textiles | On 18th Oct 2017

Sutlej Textiles adds American Silk Mills to its portfolio

Sutlej Textiles and Industries Ltd (STIL) has announced the...

Arvind Limited executive directors Punit Lalbhai (left) and Kulin Lalbhai explaining the project to Gujarat chief minister Vijay Rupani. Courtesy: Arvind Ltd

Apparel/Garments | On 18th Oct 2017

Arvind to set up mega apparel facility in Gujarat

Arvind Limited, one of India’s largest textile to retail...

Cotton stocks accumulating everywhere outside of China

Textiles | On 18th Oct 2017

Cotton stocks accumulating everywhere outside of China

Global cotton stocks outside of China are expected to rise by nearly...

Interviews View All

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Hardik Sanghvi

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

Abhishek Pachauri

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

Johan Berlin
InvestKonsult Sweden AB

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

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Igor Chapurin
Chapurin

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

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

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

October 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
77.3%
No
13.6%
Skip
9.1%

Total Votes: 66

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
60.6%
No
28.8%
Skip
10.6%

Total Votes: 66

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
84.8%
No
10.6%
Skip
4.5%

Total Votes: 66

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
74.2%
No
12.1%
Skip
13.6%

Total Votes: 66


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