House of Fabrics Reports Profit During 2nd Quarter

House of Fabrics reported a profit of $703,000 in its fiscal second quarter that ended July 31, contrasted with a year-earlier loss of $119,000.

The Sherman Oaks-based operator of 613 fabric and sewing stores said the earnings gain came on an 8% increase in sales, to $87.4 million from $81.3 million. House of Fabrics said the improvement reflected its shift from operating smaller, shopping-mall outlets to large superstores, which has increased the company’s profit margins.

In the six months that ended July 31, House of Fabrics’ profit more than doubled to $2.86 million from $1.22 million a year earlier, and its six-month sales rose 8% to $173.8 million from $160.8 million.