House of Fabrics Reports $415,000 Loss in Quarter

House of Fabrics Inc., a Sherman Oaks-based operator of retail fabric stores, reported a loss of $415,000 in its second fiscal quarter ended July 31, despite a 29% increase in sales.

The company attributed its loss, which compared with a profit of $1.55 million a year earlier, to increased cost of sales and expenses related to the opening of new super-stores. The company said those new stores, along with more aggressive advertising, helped boost sales in the second quarter to $126.6 million, up from $98 million a year earlier.

With the latest results, House of Fabrics’ profits plunged 55% in the six months ended July 31, to $2.2 million from $4.9 million a year earlier. Revenue, however, jumped 27%, to $252.9 million from $199.3 million.