Despite the uncertain economic environment, the management continues to revitalize stores while keeping a tight focus on expenses and inventories.
The leading national fabric and craft retailer announced net sales for the second quarter of $403 million compared with $388.5 million in the prior year period. The management reported a quarterly net loss of $11.7 million, or 47 cents per share versus a net loss of $18.4 million, or 76 cents per share in fiscal 2008 comparable quarter. The same store sales increased 3.3% compared with an increase of 7% for the same period in the previous year.
Net sales increased 5.2% to $446.1 million from $424.2 million in the prior year as strategic initiatives enhanced the competitive position.
The national fabric and craft retailer’s margins decreased by 90 basis points to due to the carryover of seasonal product. However, income was $3 million or 12 cents a share up from a loss of $1.7 million or 7 cents a share last year as many initiatives drove the improved performance as well as revenue growth. The economic environment remains uncertain, but it will continue to focus on executing strategic initiatives and enhancing the competitive position.
Sales dropped 3% to $586 million from $601 million in 2006 due in part to an extra week added $28.8 million in sales to the prior year’s results.
The national fabric and craft retailer reported a 6.6% increase in earnings to $27.5 million or $1.10 per share, from $25.8 million or $1.05 per share in the prior year due to gross margin improvement in retail stores offset by the impact of sales from newly acquired Internet business. The strategic growth plan outlined earlier in the fiscal year allowed it to deliver balanced and consistent improvement for the year.
