House of Fabrics Income Dips 6.3%

House of Fabrics said its earnings fell 6.3% to $2.6 million, or 40 cents a share, in the third quarter ended Oct. 31 from a year earlier. The company said the drop was due to the elimination of investment tax credits taken earlier this year as a result of new federal tax laws retroactive to Jan. 1.

The Sherman Oaks chain of fabric stores said its sales rose 11.2% to $86.2 million in the quarter because of increased promotions.

For the nine months, House of Fabrics reported a 34.6% increase in profits to $3.9 million, or 60 cents a share, with sales rising 12.9% to $226.7 million.