Yes, the 40% coupon works on line. I don't know about the sale flyers though. I talked to their customer service a few months back when I couldn't get the sale price to come up on line - I really like their "I LOVE THIS YARN". I am anxious to see what the prices are compared to the store. I have noticed that every weekly ad has calicos/cottons 30% off.
I just checked and the fabrics do not appear to have the discount applied. However, their most expensive brand name fabric is $8.99. And all of listings have the manufacturer and such. I guess if I want alot of one of the expensive fabrics, I will just email the information to my mom or best friend and have them send it to me. Maybe someone on the board would be willing to be a Fabric Fairy.
I know that on one of my Cross Stitch boards, we have Floss Fairies and I am one. That is usually someone who lives near one of the few stores that does really good sales on DMC floss. We will take 'orders' from other who do not live near any typeof cross stitch/fabric store and are located in Europe, Australia or Canada. Overseas they regularly pay at least $2.50/skein when regular price is $0.40/skein in the US. Sometimes the sales are 4/$1 and have been as good as 8/$1. There have been more than a few times when I have gone to ACMoore and bought 800-1000 skeins at a time and made more than one trip.
Anyway, I am really happy that HL is selling the fabrics on-line now. Along with a lot of other stuff. They always have some really beautiful forals and lots of kid prints. They really have a nice selection, and lots of solids too.