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Jo-Ann’s First-Quarter Results
By BillGardner | May 28, 2008
Jo-Ann Stores announced today financial results for its fiscal 2009 first quarter ended May 3, 2008. Net earnings were $3 million or $0.12 per diluted share, versus a net loss of $1.7 million or $0.07 loss per share in fiscal 2008. As reported earlier this month, net sales for the first quarter increased 5.2 percent to $446.1 million from $424.2 million last year. Same-store sales increased 4.5 percent compared with a 1.8 percent increase for the same period last year. Large-format stores net sales for the quarter increased 5 percent to $230.2 million from $219.3 million last year. Same-store sales for large-format stores increased 3.3 percent compared to an increase of 3 percent for the same period last year. Small-format stores net sales for the quarter increased 1.4 percent to $207.7 million from $204.9 million last year. Same-store sales performance for small-format stores increased 5.8 percent compared to an increase of 0.8 percent for the same period last year. Darrell Webb, chairman, president, and ceo, said, “I am very pleased with our first quarter results and encouraged to see so many initiatives from our Strategic Plan driving the improved performance. This was our fifth consecutive quarter of same-store sales improvement and seventh consecutive quarter of increasing earnings per share. The current economic environment remains uncertain, but we will continue to focus on executing our strategic initiatives and enhancing our competitive position to deliver balanced and consistent performance throughout fiscal 2009 and beyond.” During the first quarter, the company closed one large-format store and one small-format store. For the fiscal year, the company now expects to open approximately 20 to 23 new stores, up from the company’s prior expectation of 12 to 15 stores, and close approximately 30 stores, up from the prior expectation of 25 stores. According to the company’s press release, this increase reflects the company’s decision to take advantage of opportunities in the real estate market. Also during the first quarter the company remodeled 12 stores, of which four were transitioned from a small format to a large format. The company expects to remodel approximately 25 to 30 stores during the year, transitioning five of them from small formats to large formats. For the remainder of the fiscal year, the company anticipates same-store sales growth of 1 percent to 3 percent, and earnings per diluted share in the range of $0.75 to $0.85 for the year, compared to the previously announced range of $0.70 to $0.85.
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