By Carlie Kollath/NEMS Daily Journal
BALDWYN – Hancock Fabrics on Tuesday reported a second quarter loss of $3.9 million, compared to a loss of $757,000 in the year-ago quarter.
Sales for the current quarter also dipped to $57.8 million, down slightly from $60.5 million in the year-ago quarter.
Same-store sales fell 4.1 percent compared to a 0.7 percent increase in the previous year. Hancock ended the quarter with 265 stores. The results also reflect sales from HancockFabrics.com.
Steve Morgan, interim president and CEO, in a press release said the quarterly numbers were negatively influenced by the lack of buying strategies implemented last summer.
Morgan took over in January after Hancock’s board opted not to renew the contract of Jane Aggers, who had been CEO for six years.
During her time, the company began adding an expanded craft assortment in its stores, using the Tupelo location as a test store.
Morgan on Tuesday said the craft merchandise is in about 25 percent of the company’s stores.
“We have seen encouraging results from our stores that have an expanded craft assortment currently in place,” he said. “These stores have run significantly better than the chain over the last 30 days.”
The company has a year-to-date loss of $6.1 million, compared with a loss of $2.1 million in the first half of last year.