UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

         Date of report (Date of earliest event reported): May 20, 2003


                              HANCOCK FABRICS, INC.
               (Exact Name of Registrant as Specified in Charter)


                         Commission File Number 1 - 9482

              Delaware                                      64-0740905
     (State or other jurisdiction                      (I. R. S. Employer
  of incorporation or organization)                     Identification No.)

 3406 West Main Street, Tupelo, MS                            38801
(Address of principal executive offices)                    (Zip Code)


               Registrant's telephone number, including area code
                                 (662) 842-2834
<PAGE>

Item 7.  Financial Statements, Pro Forma Financial Information and Exhibits.

         (c)           Exhibits:

          Exhibit
          Number       Description
          ----------   ---------------------------------------------------------

            99.1       Press release issued by Hancock Fabrics, Inc., dated
                       May 20, 2003

Item 9.  Regulation FD Disclosure.

     The  information  contained in this Item 9 is being  furnished  pursuant to
"Item  12.  Results  of  Operations  and  Financial  Condition"  of Form  8-K in
accordance with SEC Release Nos. 33-8216 and 34-47583.

     The information contained in this Current Report on Form 8-K, including the
exhibit  attached  hereto,  is being  furnished  and  shall  not be deemed to be
"filed" for the  purposes of Section 18 of the  Securities  and  Exchange Act of
1934,  as amended,  or otherwise  subject to the  liabilities  of that  Section.
Furthermore,  the information contained in this Current Report on Form 8-K shall
not be deemed to be incorporated by reference into any registration statement or
other document filed pursuant to the Securities Act of 1933, as amended.

     On May 20, 2003, Hancock Fabrics,  Inc. issued a press release  announcing,
among other things,  its quarterly earnings results for the quarter ended May 4,
2003.  A copy of the press  release is attached as Exhibit  99.1 to this Current
Report on Form 8-K.


                                       2
<PAGE>

                                    SIGNATURE

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                                HANCOCK FABRICS, INC.
                                                    (Registrant)

                                                By:/s/ Bruce D. Smith
                                                   -------------------
                                                   Bruce D. Smith

                                                   Senior Vice President and
                                                   Chief Financial Officer
                                                  (Principal Financial and
                                                   Accounting Officer)

May 20, 2003


                                       3
<PAGE>
                                INDEX TO EXHIBITS


   Exhibit
   Number      Description
  ----------   -----------------------

     99.1      Press release issued by Hancock Fabrics, Inc., dated May 20, 2003

                                       4
<PAGE>


Corporate Headquarters                                              May 20, 2003
3406 West Main Street
Tupelo, MS 38801


Released by:      Ellen Kennedy
                  (662) 842-2834, Ext. 109


                             HANCOCK FABRICS REPORTS
                           IMPROVED SALES AND EARNINGS

Hancock Fabrics,  Inc. (NYSE symbol:  HKF) today announced its unaudited results
for the first fiscal quarter of 2003.

Sales in the 13 weeks ended May 4, 2003  increased  3.4% to $107.6  million from
$104.1  million  in the same  quarter of 2002.  Net  earnings  improved  to $4.1
million,  or $.22 per diluted  share,  compared with $3.7  million,  or $.20 per
diluted share, in 2002's first quarter.

Comparable  store sales  increased 4.2% in the first quarter of 2003 over a 7.4%
gain a year ago.

In commenting on the results, Larry G. Kirk, Chief Executive Officer, stated,
"Earnings were reasonably good in the first quarter considering the effects of
weather, war and weakness in the general retailing environment. Comparable store
sales were not as strong as expected, but repeated snow and ice storms in
February hurt business and caused some key advertising promotions to be much
less productive. Sales were also down in the first week or so of the war.
However, expenses as a percent of sales were even with a year ago, and gross
margins were higher despite very promotional conditions in the industry and in
retailing in general."

"For the reasons mentioned,  advertising was higher as a percent of sales from a
year ago, and health insurance,  general insurance and pension costs continue to
rise nationally.  However, store payroll management was much improved, and fixed
expenses were also  leveraged  downward by the increased  same store sales.  The
most  significant  increase  in  expenses  related  to the  start-up  of our new
distribution  center. We will be contending with some duplication of costs until
the  transition  from the  existing  facility to the new one is completed a year
from now," Kirk said.


<PAGE>
Hancock Fabrics, Inc.                                                     Page 2
Press Release                                                       May 20, 2003

"The  Company's  balance sheet is in good  condition with $4 million of cash and
$17 million in  outstanding  bank debt at quarter end. Some of the need for bank
borrowings resulted from the early purchases of key Fall imported merchandise in
order to avoid sharp  increases in ocean  freight  rates  beginning May 1 and to
guard against a potential  shortage of shipping  capacity  later in the year. In
addition, the Company repurchased 650,000 shares of HKF stock during the quarter
at a cost of $9  million.  Interest  rates  remain  very low and easily  justify
further  stock  buybacks  given the current  dividend  yield.  However,  we will
consider seasonal cash needs, capital expenditure  commitments,  business trends
and the share price in determining  the level and timing of  repurchases,"  Kirk
continued.

"We are continuing to concentrate on improving our store locations, refining our
merchandise  model,  appealing to a broader base of customers  and  accelerating
unit  growth.  We've  made good  progress,  but we  believe  there  are  further
opportunities in our existing stores, in expansion into underserved  markets and
in our distribution  capabilities.  We are now shipping some product  categories
from the new distribution center, even as the facility itself is being expanded.
Although 2003 will be a transition process for our distribution activities,  the
new  facility  will  provide  greater  operating  efficiencies  and will support
increased store growth for the foreseeable future," Kirk concluded.

During the  quarter,  Hancock  opened  seven  stores and closed six. The Company
currently  operates  431 retail  fabric  stores in 42 states,  supplies  various
independent  wholesale  customers  and operates an internet  store under its two
domain names, www.hancockfabrics.com and www.homedecoratingaccents.com.

Hancock Fabrics,  Inc. is a retail and wholesale  merchant of fabric and related
home sewing and decorating accessories.

Comments in this news release that are not historical facts are  forward-looking
statements that involve risks and uncertainties which could cause actual results
to differ  materially from projections.  These risks and uncertainties  include,
but are not limited to, general economic  trends,  changes in consumer demand or
purchase  patterns,  delays or interruptions in the flow of merchandise  between
the  Company's  suppliers  and/or  its  distribution  center and its  stores,  a
disruption  in the  Company's  data  processing  services,  costs and  delays in
acquiring or developing new store sites,  and other  contingencies  discussed in
the Company's Securities and Exchange Commission filings.  Hancock undertakes no
obligation to release revisions to these  forward-looking  statements to reflect
events or  circumstances  after the date hereof or to reflect the  occurrence of
unforeseen  events,  except  as  required  to be  reported  under  the rules and
regulations of the Securities and Exchange Commission.

<PAGE>

Hancock Fabrics, Inc.                                                     Page 3
Press Release                                                       May 20, 2003

                    COMPARATIVE FINANCIAL SUMMARY (unaudited)
                  (000's omitted, except for per share amounts)

                                             13 Weeks            13 Weeks
                                            May 4, 2003        May 5, 2002
                                          --------------       ------------

Sales                                         $107,636           $104,054

Cost of Goods Sold
  After LIFO Effect                             52,897             51,519
                                          --------------       ------------

  Gross Profit                                  54,739             52,535

Expenses:
  Selling, G&A                                  46,820             45,301
  Dep'n/Amort                                    1,452              1,332
                                          --------------       ------------
                                                48,272             46,633
                                          --------------       ------------

Operating Income                                 6,467              5,902

Interest Expense                                    94                 60
Interest Income                                    (17)               (31)
                                          --------------       ------------

Earnings Before
  Income Taxes                                   6,390              5,873

Income Taxes                                     2,319              2,132
                                          --------------       ------------

Net Earnings                                  $  4,071           $  3,741
                                          ==============       ============

Earnings Per Share

    Basic                                     $   0.23           $   0.21
                                          ==============       ============

    Diluted                                   $   0.22           $   0.20
                                          ==============       ============


Average Shares
  Outstanding (000's)

    Basic                                       17,790             17,594

    Diluted                                     18,684             18,828

LIFO Charge (Credit)
  Included in
  Cost of Goods Sold                          $      0           $      0



<PAGE>
Hancock Fabrics, Inc.                                                     Page 4
Press Release                                                       May 20, 2003

                           CONSOLIDATED BALANCE SHEET
                                 (in thousands)

                                                          May 4,        May 5,
                                                           2003          2002
                                                      ------------   -----------
ASSETS:
Current assets:
    Cash and cash equivalents                            $  3,928    $   7,255
    Inventories                                           146,106      132,585
    Other current assets                                    2,429        2,740
                                                      ------------   -----------

       Total current assets                               152,463      142,580

Property and equipment, at depreciated cost                43,976       31,358
Pension payment in excess of required contribution         18,049        2,987
Other assets                                               11,880       16,201
                                                      ------------   -----------

                                                         $226,368    $ 193,126
                                                      ============   ===========


LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
    Accounts payable and other liabilities               $ 55,278    $  47,584
    Income taxes                                            7,347        3,829
                                                      ------------   -----------

       Total current liabilities                           62,625       51,413

Long-term debt obligations                                 17,000            0
Postretirement benefits other than pensions                22,077       21,866
Other noncurrent liabilities                                5,416        6,997
Shareholders' equity                                      119,250      112,850
                                                      ------------   -----------

                                                         $226,368    $ 193,126
                                                      ============   ===========




Released at 4:00 P. M.
Tupelo, MS
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UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

         Date of report (Date of earliest event reported): May 20, 2003

                              HANCOCK FABRICS, INC.
               (Exact Name of Registrant as Specified in Charter)

                         Commission File Number 1 - 9482

              Delaware                                      64-0740905
     (State or other jurisdiction                      (I. R. S. Employer
  of incorporation or organization)                     Identification No.)

 3406 West Main Street, Tupelo, MS                            38801
(Address of principal executive offices)                    (Zip Code)

               Registrant's telephone number, including area code
                                 (662) 842-2834
Item 7.  Financial Statements, Pro Forma Financial Information and Exhibits.

         (c)           Exhibits:

          Exhibit
          Number       Description
          ----------   ---------------------------------------------------------

            99.1       Press release issued by Hancock Fabrics, Inc., dated
                       May 20, 2003

Item 9.  Regulation FD Disclosure.

     The  information  contained in this Item 9 is being  furnished  pursuant to
"Item  12.  Results  of  Operations  and  Financial  Condition"  of Form  8-K in
accordance with SEC Release Nos. 33-8216 and 34-47583.

     The information contained in this Current Report on Form 8-K, including the
exhibit  attached  hereto,  is being  furnished  and  shall  not be deemed to be
"filed" for the  purposes of Section 18 of the  Securities  and  Exchange Act of
1934,  as amended,  or otherwise  subject to the  liabilities  of that  Section.
Furthermore,  the information contained in this Current Report on Form 8-K shall
not be deemed to be incorporated by reference into any registration statement or
other document filed pursuant to the Securities Act of 1933, as amended.

     On May 20, 2003, Hancock Fabrics,  Inc. issued a press release  announcing,
among other things,  its quarterly earnings results for the quarter ended May 4,
2003.  A copy of the press  release is attached as Exhibit  99.1 to this Current
Report on Form 8-K.

                                       2
SIGNATURE

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                                HANCOCK FABRICS, INC.
                                                    (Registrant)

                                                By:/s/ Bruce D. Smith
                                                   -------------------
                                                   Bruce D. Smith

                                                   Senior Vice President and
                                                   Chief Financial Officer
                                                  (Principal Financial and
                                                   Accounting Officer)

May 20, 2003

                                       3
INDEX TO EXHIBITS

   Exhibit
   Number      Description
  ----------   -----------------------

     99.1      Press release issued by Hancock Fabrics, Inc., dated May 20, 2003

                                       4
Corporate Headquarters                                              May 20, 2003
3406 West Main Street
Tupelo, MS 38801

Released by:      Ellen Kennedy
                  (662) 842-2834, Ext. 109

                             HANCOCK FABRICS REPORTS
                           IMPROVED SALES AND EARNINGS

Hancock Fabrics,  Inc. (NYSE symbol:  HKF) today announced its unaudited results
for the first fiscal quarter of 2003.

Sales in the 13 weeks ended May 4, 2003  increased  3.4% to $107.6  million from
$104.1  million  in the same  quarter of 2002.  Net  earnings  improved  to $4.1
million,  or $.22 per diluted  share,  compared with $3.7  million,  or $.20 per
diluted share, in 2002's first quarter.

Comparable  store sales  increased 4.2% in the first quarter of 2003 over a 7.4%
gain a year ago.

In commenting on the results, Larry G. Kirk, Chief Executive Officer, stated,
"Earnings were reasonably good in the first quarter considering the effects of
weather, war and weakness in the general retailing environment. Comparable store
sales were not as strong as expected, but repeated snow and ice storms in
February hurt business and caused some key advertising promotions to be much
less productive. Sales were also down in the first week or so of the war.
However, expenses as a percent of sales were even with a year ago, and gross
margins were higher despite very promotional conditions in the industry and in
retailing in general."

"For the reasons mentioned,  advertising was higher as a percent of sales from a
year ago, and health insurance,  general insurance and pension costs continue to
rise nationally.  However, store payroll management was much improved, and fixed
expenses were also  leveraged  downward by the increased  same store sales.  The
most  significant  increase  in  expenses  related  to the  start-up  of our new
distribution  center. We will be contending with some duplication of costs until
the  transition  from the  existing  facility to the new one is completed a year
from now," Kirk said.
Hancock Fabrics, Inc.                                                     Page 2
Press Release                                                       May 20, 2003

"The  Company's  balance sheet is in good  condition with $4 million of cash and
$17 million in  outstanding  bank debt at quarter end. Some of the need for bank
borrowings resulted from the early purchases of key Fall imported merchandise in
order to avoid sharp  increases in ocean  freight  rates  beginning May 1 and to
guard against a potential  shortage of shipping  capacity  later in the year. In
addition, the Company repurchased 650,000 shares of HKF stock during the quarter
at a cost of $9  million.  Interest  rates  remain  very low and easily  justify
further  stock  buybacks  given the current  dividend  yield.  However,  we will
consider seasonal cash needs, capital expenditure  commitments,  business trends
and the share price in determining  the level and timing of  repurchases,"  Kirk
continued.

"We are continuing to concentrate on improving our store locations, refining our
merchandise  model,  appealing to a broader base of customers  and  accelerating
unit  growth.  We've  made good  progress,  but we  believe  there  are  further
opportunities in our existing stores, in expansion into underserved  markets and
in our distribution  capabilities.  We are now shipping some product  categories
from the new distribution center, even as the facility itself is being expanded.
Although 2003 will be a transition process for our distribution activities,  the
new  facility  will  provide  greater  operating  efficiencies  and will support
increased store growth for the foreseeable future," Kirk concluded.

During the  quarter,  Hancock  opened  seven  stores and closed six. The Company
currently  operates  431 retail  fabric  stores in 42 states,  supplies  various
independent  wholesale  customers  and operates an internet  store under its two
domain names, www.hancockfabrics.com and www.homedecoratingaccents.com.

Hancock Fabrics,  Inc. is a retail and wholesale  merchant of fabric and related
home sewing and decorating accessories.

Comments in this news release that are not historical facts are  forward-looking
statements that involve risks and uncertainties which could cause actual results
to differ  materially from projections.  These risks and uncertainties  include,
but are not limited to, general economic  trends,  changes in consumer demand or
purchase  patterns,  delays or interruptions in the flow of merchandise  between
the  Company's  suppliers  and/or  its  distribution  center and its  stores,  a
disruption  in the  Company's  data  processing  services,  costs and  delays in
acquiring or developing new store sites,  and other  contingencies  discussed in
the Company's Securities and Exchange Commission filings.  Hancock undertakes no
obligation to release revisions to these  forward-looking  statements to reflect
events or  circumstances  after the date hereof or to reflect the  occurrence of
unforeseen  events,  except  as  required  to be  reported  under  the rules and
regulations of the Securities and Exchange Commission.
Hancock Fabrics, Inc.                                                     Page 3
Press Release                                                       May 20, 2003

                    COMPARATIVE FINANCIAL SUMMARY (unaudited)
                  (000's omitted, except for per share amounts)

                                             13 Weeks            13 Weeks
                                            May 4, 2003        May 5, 2002
                                          --------------       ------------

Sales                                         $107,636           $104,054

Cost of Goods Sold
  After LIFO Effect                             52,897             51,519
                                          --------------       ------------

  Gross Profit                                  54,739             52,535

Expenses:
  Selling, G&A                                  46,820             45,301
  Dep'n/Amort                                    1,452              1,332
                                          --------------       ------------
                                                48,272             46,633
                                          --------------       ------------

Operating Income                                 6,467              5,902

Interest Expense                                    94                 60
Interest Income                                    (17)               (31)
                                          --------------       ------------

Earnings Before
  Income Taxes                                   6,390              5,873

Income Taxes                                     2,319              2,132
                                          --------------       ------------

Net Earnings                                  $  4,071           $  3,741
                                          ==============       ============

Earnings Per Share

    Basic                                     $   0.23           $   0.21
                                          ==============       ============

    Diluted                                   $   0.22           $   0.20
                                          ==============       ============

Average Shares
  Outstanding (000's)

    Basic                                       17,790             17,594

    Diluted                                     18,684             18,828

LIFO Charge (Credit)
  Included in
  Cost of Goods Sold                          $      0           $      0
Hancock Fabrics, Inc.                                                     Page 4
Press Release                                                       May 20, 2003

                           CONSOLIDATED BALANCE SHEET
                                 (in thousands)

                                                          May 4,        May 5,
                                                           2003          2002
                                                      ------------   -----------
ASSETS:
Current assets:
    Cash and cash equivalents                            $  3,928    $   7,255
    Inventories                                           146,106      132,585
    Other current assets                                    2,429        2,740
                                                      ------------   -----------

       Total current assets                               152,463      142,580

Property and equipment, at depreciated cost                43,976       31,358
Pension payment in excess of required contribution         18,049        2,987
Other assets                                               11,880       16,201
                                                      ------------   -----------

                                                         $226,368    $ 193,126
                                                      ============   ===========

LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
    Accounts payable and other liabilities               $ 55,278    $  47,584
    Income taxes                                            7,347        3,829
                                                      ------------   -----------

       Total current liabilities                           62,625       51,413

Long-term debt obligations                                 17,000            0
Postretirement benefits other than pensions                22,077       21,866
Other noncurrent liabilities                                5,416        6,997
Shareholders' equity                                      119,250      112,850
                                                      ------------   -----------

                                                         $226,368    $ 193,126
                                                      ============   ===========

Released at 4:00 P. M.
Tupelo, MS