House of Fabrics Earnings Rise 29% in 4th Quarter

House of Fabrics Inc., a Sherman Oaks-based operator of retail fabric stores, said its fourth-quarter earnings rose 29% to $8.35 million from $6.46 million a year earlier, while sales jumped 33% to $153.3 million from $115.36 million.

The company attributed the sales and earnings gains to its acquisition last July of Fabricland Inc., a Portland, Ore.-based retailer with 84 stores, and House of Fabrics’ ongoing shift from shopping mall-based outlets to bigger and more profitable fabric “super stores.”

For the year ended Jan. 31, House of Fabrics’ earnings climbed 42% to $19.7 million from $13.8 million a year earlier, on a 25% rise in sales to $493 million from $393.5 million.

During the fiscal year, House of Fabrics opened or acquired 138 super stores and closed 75 locations, said Gary L. Larkins, president and chief executive. The chain now operates 465 super stores and 202 mall-based outlets.

Larkins said the company hopes to open 90 additional super stores this fiscal year while closing 65 smaller stores.