By Carlie Kollath/NEMS Daily Journal
TUPELO – Baldwyn-based Hancock Fabrics on Friday reported its sales and profit took a tumble, with the CEO blaming “inventory challenges.”
Hancock posted a $40,000 loss for the quarter, compared with $1.4 million in net income in the prior-year quarter.
Hancock’s year-to-date net loss is $6.1 million, compared with a net loss of $0.7 million in fiscal 2010.
Net sales also slipped in the most recent quarter. Hancock said it had net sales of $70.8 million in the third quarter, compared to sales of $73.5 million in the prior-year quarter.
Hancock’s year-to-date net sales are $190.6 million, compared with $197 million in FY 2010.
Same-store sales – the sales at stores open for at least a year – fell 3.5 percent, compared to a 0.3 percent increase in the third quarter of 2010.
Steve Morgan, the company’s new president and CEO, said in a press release that same-store sales for the first five weeks of the fourth quarter are up.
“November is the first month in over a year that we had an increase in same-store sales,” he said. “We will seek to continue this momentum through the fourth quarter and into next year now that the missed merchandise issues have been resolved.”
The company ended the quarter with 265 retail stores in 37 states and an e-commerce site: www.hancockfabrics.com.