Hancock Fabrics quarterly results miss expectations

BALDWYN, Miss. Hancock Fabrics reported that net sales for the quarter were $63.1 million compared with $64.1 million for first quarter of last year, and comparable-store sales decreased 2% compared with a 2.3% increase in the previous year.

Net loss was $1.3 million, or 7 cents per basic share, in the first quarter of fiscal 2010 compared with a loss of $0.9 million, or 5 cents per share in the first quarter of fiscal 2009. 

Jane Aggers, president and CEO noted, “While our results for the quarter were below our expectations, we made significant progress in remedying merchandising and inventory issues carried forward from last year. This resulted in a temporary impact on gross margins for the quarter. Store revenues began the quarter slowly but have steadily increased through the end of the quarter and this trend has continued into the second quarter.”