BALDWYN – Hancock Fabrics CEO Jane Aggers said Thursday that she was “not pleased” with the company’s second-quarter results, which showed a net loss of $2.3 million and a 6.6 percent drop in sales.
Yet, she said, there is hope in the two-year results, which showed the company increased its earnings by $8.6 million compared to the prior-year period.
The comments came during a conference call Thursday morning. She said the company is responsible from some of the problems and it will make changes going forward, including ramping up its merchandising and marketing efforts.
Hancock CFO and Executive Vice President Rob Driskell said same-store sales were down 4.2 percent and attributed the fall to the economy and the previous year’s 10.8 percent increase.
Aggers added that customers are not buying higher priced items and the home decorating department is suffering, posting a 14 percent sales decline in the second quarter.
Aggers said a cultural shift is happening at the company as employees get on board with Hancock’s plan since emerging from bankruptcy in August 2008.
“Our team is committed to taking the appropriate actions to return our company to profitability,” Aggers said.
Driskell said the company ended the quarter with 4,000 store employees and 350 at the corporate headquarters and distribution center. Hancock doesn’t plan to close any stores this year, he added.
Contact Carlie Kollath at (662) 678-1598 or firstname.lastname@example.org.
Carlie Kollath/NEMS Daily Journal