16859 Thu, 08/27/2009 - 11:51am
BALDWYN, Miss.–Hancock Fabrics reduced its second-quarter net loss from $10.9 million last year to $2.3 million this year.
The improvement in results came from a combination of expense reductions and better management of the company’s balance sheet. Selling, general and administrative expenses were down 6.8 percent in the quarter, and cost of goods sold was lowered by 10.6 percent. In addition, Hancock has paid down $27.5 million in debt since exiting bankruptcy on Aug. 1, 2008, which sliced down its second-quarter interest expense by 61.5 percent.
Hancock’s net sales declined by 6.6 percent to $59.6 million in the second quarter, a figure that included a 4.2 percent decrease in same-store sales.