Fabric wholesale merchant Hancock Fabrics Inc announced the unaudited results of its third fiscal quarter of 2005.
Sales in the 13 weeks ended October 29, 2005 decreased 5.5 percent to $103.9 million from $109.9 million in the same quarter of 2004.
The Company reported a net loss of $2.5 million, or $.14 per diluted share, compared with net earnings of $1.0 million, or $.05 per diluted share, in the third quarter a year ago.
In addition, the Company announced that its Board of Directors has suspended indefinitely its quarterly dividend.
In commenting on the results, Jane Aggers, Chief Executive Officer, stated, 'The selling environment is still very challenging, as evidenced by their 6.3 percent decline in comparable store sales during the third quarter.
Their home decorating business and the fleece fabrics category provided the most negative results.
Although promotional activities increased in the market, their gross margin rate remained flat, before the effect of LIFO,' Aggers said.
'Throughout the third quarter, they implemented three major initiatives involving merchandising, marketing and store presentation.
Although results have been mixed, they believe they have taken the necessary steps to improve their connection with their customers.
They will continue to monitor the results of these initiatives for the remainder of the fall selling season and determine which strategies are appropriate for the future,' Aggers continued.
marketing@alchempro.com
