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HOUSE OF FABRICS HAS BEST QUARTER AND YEAR IN ITS HISTORY; NET INCOME CLIMBS 42 PERCENT IN FISCAL 1992

 HOUSE OF FABRICS HAS BEST QUARTER AND YEAR IN ITS HISTORY;
 NET INCOME CLIMBS 42 PERCENT IN FISCAL 1992
 SHERMAN OAKS, Calif., Feb. 25 /PRNewswire/ -- Reflecting the success of its super store strategy, plus its recent acquisition of Fabricland, House of Fabrics Inc. (NYSE: HF) posted substantial increases in sales and earnings for both the fourth quarter and full fiscal year ended Jan. 31, 1992. The company set new records for both the quarter and full year.
 For the fourth quarter, net income totaled $8,346,000, up 29 percent from $6,456,000, and net income per share increased to 56 cents from 54 cents a year ago. The net income per share comparison reflected the 22 percent increase in average shares outstanding due to the acquisition of Fabricland Inc. on July 16, 1991. Average shares outstanding in the current quarter were 14,978,014 vs. 11,947,316 in the year-earlier period. Per share figures have been adjusted to reflect the 2-for-1 stock split effected on April 30, 1991.
 Fourth quarter sales increase 33 percent to $153,299,000 from $115,358,000 in the corresponding period last year.
 Sales for the year rose 25 percent to $493,062,000 from $393,495,000 last year, reflecting a strong showing from House of Fabrics stores plus the sales added as a result of the Fabricland acquisition in July 1991.
 Net income for the full fiscal year climbed 42 percent to $19,691,000 from $13,831,000, and net income per share went up 27 percent to $1.44 from $1.13 last year as adjusted for the previously mentioned stock split. Average shares outstanding were 13,702,976 in fiscal 1992 and 12,276,274 in 1991, with the increased shares outstanding in the past year reflecting the Fabricland acquisition.
 Gary L. Larkins, president and chief executive officer, said: "The past year was a period of great accomplishment for House of Fabrics. Not only did we complete the major Fabricland acquisition, but we also continued to implement the super store strategy which is the foundation of our progress. These strategies combined to produce an exceptionally successful year.
 "The Fabricland acquisition has been completed and its operations assimilated. Looking ahead, we expect additional future benefits from Fabricland as we move forward. The 84 Fabricland super stores, which are located primarily in the Pacific Northwest, continue to turn in excellent results and make an ideal fit with our programs and strategies.
 "Since 1985, we have been systematically converting the company's operations to the super store from its former mode of operations which was based on the operation of smaller units, averaging 4,500 square feet, located in regional malls.
 "That decision reflected our belief that super stores averaging 10,000 to 12,000 square feet of space would allow us to offer a much greater range and variety of merchandise, display our products including fabrics, crafts, notions and sewing machines in a more appealing and attractive manner and make possible more cost effective operations. These expectations have proven accurate, and our investment in the larger stores is being well rewarded.
 "With their convenience, quality, selection and variety, the super stores have achieved a high level of popularity with our customers. During the past year, we opened or acquired 138 super stores while closing 75 locations. House of Fabrics currently operates 465 super stores and 202 mall-based units. Reflecting the success of this strategy, we plan to increase super store openings significantly in the next 12 months. Our objective will be to open 90 super stores in the present fiscal year while closing approximately 65 other units.
 "It should also be pointed out that our super stores continue to improve their performance as they gain strength with each year of maturity. Thus, we expect to realize substantial continuing benefits over the next several years as that process continues.
 "The company is on a sound course, and the fundamentals of our business remain very solid. In the past fiscal year, the greater efficiency and profitability of our super stores again enabled us to increase after-tax margins. In the coming year, we anticipate additional benefits from the continued maturation of these larger stores as well as the further integration of Fabricland. In addition, we look forward to an end of the recession and are convinced that an improving economy will benefit House of Fabrics."
 As previously announced, the company has recently repurchased approximately 700,000 shares of its common stock, completing its March 1990 authorization of a 1,000,000 share repurchase. In February 1992, the board of directors authorized an additional 1,000,000 share repurchase of the company's common stock.
 House of Fabrics Inc. is the nation's largest chain of company-owned and operated retail fabric stores with 667 currently in operation.
 HOUSE OF FABRICS
 Summary of Consolidated Operations
 Three Months Ended Jan. 31
 1992 1991
 Sales $153,299,000 $115,358,000
 Income before income taxes $13,790,000 $10,850,000
 Net income $8,346,000 $6,456,000
 Net income per share $.56 $.54 (a)
 Average shares outstanding 14,978,014 11,947,316 (a)
 Year Ended Jan. 31
 1992 1991
 Sales $493,062,000 $393,495,000
 Income before income taxes $32,487,000 $23,245,000
 Net income $19,691,000 $13,831,000
 Net income per share $1.44 $1.13 (a)
 Average shares outstanding 13,702,976 12,276,274 (a)
 (a) Adjusted to reflect a 2-for-1 stock split effected on April 30, 1991.
 -0- 2/25/92
 /CONTACT: Gary L. Larkins, president of House of Fabrics, 818-995-7000/
 (HF) C 1P'House of Fabrics Inc. ST: California IN: REA SU: ERN


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