Hancock Fabrics net sales down $3.3 mn for Q1 2005
18 May '05
4 min read
These areas are being addressed as part of the development of an overall plan that will involve new/expanded merchandise lines, changes to the advertising strategy and enhancements to store presentation. The clear goal of this plan is to truly give our customers the store they expect," Aggers said.
"Gross margins continued to be pressured by the need for markdowns to clear seasonal goods during this period of slow sales and by the LIFO charge. On the expense side, every effort is being made to hold the line on expenses and, in fact, selling, general and administrative expense dollars were down slightly during the first quarter, even with 16 more stores and the normal inflationary tendencies inherent in virtually every expense category," Aggers continued.
"The balance sheet remains strong, with $41 million of debt, or 25% of total capitalization. Inventories are up $6.6 million over the prior year, due primarily to the addition of 16 stores since the end of 2004's first quarter," Aggers said.
"As we move forward over the next few months, our stores will go through a transition that will involve, among other things, enhancements to several lines of fabric, notions and sewing machines, the remerchandising of certain areas of the store to accommodate customer shopping preferences and the use of newspaper advertising inserts for the first time. In the near-term, we will continue to focus on opportunities within the four walls of existing stoe of newspaper advertising inserts for the first time. In the near-term, we will continue to focus on opportunities within the four walls of existing stores, with less immediate emphasis on growing the store base.
marketing@alchempro.com
