Hancock Fabrics Reports December Sales

  
    
  
  
    
      Hancock Fabrics, Inc. (NYSE: HKF), today reported that sales in the 
      five-week period ended December 30, 2006 totaled $41.8 million, compared 
      to $48.3 million in the same period of the prior year. The decrease in 
      total sales was due to having 43 fewer stores this year and a decline in 
      comparable store sales of 7.2% in December.
    
    
      In the first two months of the fourth quarter, total sales were $76.6 
      million versus $86.4 million a year ago, and comparable sales were down 
      5.3%. Year-to-date, total sales were $353.2 million versus $371.4 
      million in 2005. Comparable store sales in the eleven months to date 
      declined 1.8%, including a 2.9% benefit from 40 stores that had been 
      liquidated by the end of August in connection with store closing sale 
      events and two other stores that closed earlier this month.
    
    
      Hancock Fabrics, Inc. – America's Fabric Store – 
      is committed to serving creative enthusiasts with a complete selection 
      of fashion and home decorating textiles, sewing accessories, needlecraft 
      supplies and sewing machines. The Company operates 403 retail stores in 
      40 states and an Internet store at www.hancockfabrics.com.