Hancock Fabrics net sales down $3.3 mn for Q1 2005
18 May '05
4 min read
Leading specialty fabric and related home sewing and decorating accessories retailer Hancock Fabrics Inc announced the unaudited results of 2005's first quarter.
Sales in the 13 weeks ended April 30, 2005 decreased 6.9% to $97.8 million from $105.1 million in the same quarter of 2004. The Company reported a net loss of $3.3 million, or $.18 per diluted share, compared with net earnings of $.8 million, or $.04 per diluted share, in the first quarter a year ago.
The earnings comparison was negatively affected by an increase in the government's Producer Price Index that the Company uses to measure inflation in inventories, which resulted in a higher LIFO charge to cost of sales this year. Although having no cash impact, the LIFO charge caused a negative swing in the after-tax earnings comparison
of $.04 per share.
The first quarter of 2005 had one less day than in 2004, because Hancock changed its fiscal year-end from Sunday to Saturday. The effect of having one less day in this year's first quarter was to decrease sales by approximately $.7 million, while the impact on earnings was insignificant. Comparable store sales declined 6.9% in the quarter, comparing the same 90 days of both years.
In commenting on the results, Jane F. Aggers, Chief Executive Officer, stated, "The continuation of the negative sales trend in the first quarter of 2005 is a further indication that we have to connect better with our customers and our stores. Assortments in our core businesses of home decorating, quilting and apparel fabrics were not complete in the spring, nor were they merchandised effectively.
marketing@alchempro.com
