By Carlie Kollath/NEMS Daily Journal
BALDWYN – Hancock Fabrics on Friday reported a quarterly loss of $2.2 million.
The Baldwyn-based craft and fabric retailer, in an SEC filing, said net sales for the quarter were $62 million, down from $63.1 million in the first quarter of last year.
Comparable-store sales – a key measure in the retail industry – fell 1.3 percent compared to a 2 percent drop in the first quarter of last year.
The company also reduced its inventory by $6.3 million compared to the same period last year, ending the quarter at $86.7 million.
Steven R. Morgan, the company’s interim president and CEO, said the results were impacted by ongoing projects.
“We have made significant progress during the quarter in improving our store presentation, refining our craft business, refocusing our merchandise organization and expanding our replenishment process,” he said in a news release. “We have also undertaken the liquidation of our aged products.”
“While these activities have come at an initial short-term cost, we are positioning our organization for improved fall and winter seasons,” he said.
Since the year-ago quarter, the company has paid down $1.1 million on a revolving line of credit. It had outstanding borrowings of $12.6 million at the end of the quarter.
The company also incorporated a new mission statement in its release Friday. The company now describes itself as “committed to being the inspirational authority in fabric and sewing.”
Previously, it described itself as “committed to nurturing creativity.”