Hancock Fabrics Reports October Sales

  
    
  
  
    
      Hancock Fabrics, Inc. (NYSE: HKF), today reported that sales in the 
      four-week period ended October 28, 2006 totaled $34.3 million, compared 
      to $37.0 million in the same period of the prior year. The decrease in 
      total sales was due to having 41 fewer stores this year and a decline in 
      comparable store sales of 1.4% in October.
    
    
      In the third quarter, total sales were $97.0 million versus $103.9 
      million in the same period of fiscal 2005, and comparable store sales 
      declined 1.5%. Year-to-date, total sales were $276.6 million in 2006 and 
      $285.0 million in 2005. Comparable store sales in the nine months to 
      date declined 0.7%, including a 3.7% 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 are in the process of being 
      liquidated.
    
    
      “Our apparel and quilting/craft categories 
      continued to be bright spots during October. However, the gains in those 
      areas were more than offset by declines in the home decorating area,” 
      said Jane Aggers, Chief Executive Officer.
    
    
      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 405 retail stores in 
      40 states and an Internet store at www.hancockfabrics.com.
    
  
Hancock Fabrics, Inc. (NYSE: HKF), today reported that sales in
the four-week period ended October 28, 2006 totaled $34.3 million,
compared to $37.0 million in the same period of the prior year. The
decrease in total sales was due to having 41 fewer stores this year
and a decline in comparable store sales of 1.4% in October.

   In the third quarter, total sales were $97.0 million versus $103.9
million in the same period of fiscal 2005, and comparable store sales
declined 1.5%. Year-to-date, total sales were $276.6 million in 2006
and $285.0 million in 2005. Comparable store sales in the nine months
to date declined 0.7%, including a 3.7% 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 are in the process of
being liquidated.

   "Our apparel and quilting/craft categories continued to be bright
spots during October. However, the gains in those areas were more than
offset by declines in the home decorating area," said Jane Aggers,
Chief Executive Officer.

   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 405 retail stores in 40 states
and an Internet store at www.hancockfabrics.com.