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Jo-Ann’s Second-Quarter Report
Posted by: BillGardner | August 27, 2008
Jo-Ann Stores announced today a net loss for the second quarter of $11.7 million or $0.47 per share versus a net loss of $18.4 million or $0.76 per share last year.
As reported August 7, net sales for the second quarter increased 3.7 percent to $403 million from $388.5 million last year. Same-store sales increased 3.3 percent compared to a 7 percent increase last year. Net sales for the six-month period ended August 2 were $849.1 million versus $812.7 million last year. Same-store sales for the period increased 3.9 percent compared to a 4.2 percent increase last year.
Second-quarter net sales for large-format stores increased 3.1 percent to $209 million from $202.8 million last year. Same-store sales for large-format stores increased 2.3 percent compared to an increase of 9.2 percent in the prior year. Net sales for small-format stores in the quarter increased 0.6 percent to $186.9 million from $185.7 million. Same-store sales for small-format stores increased 4.4 percent compared to an increase of 4.8 percent last year.
Net sales for the six-month period in large-format stores increased 4.1 percent to $439.2 million from $422.1 million last year. Same-store sales for large-format stores increased 2.8 percent compared to a 5.9 percent increase the prior year. Net sales for small-format stores during the same period increased 1 percent to $394.6 million from $390.6 million last year. Same-store sales performance for small-format stores increased 5.2 percent versus a 2.7 percent increase in the prior year.
Darrell Webb, chairman, president, and ceo, said, “I am proud of our team for delivering another quarter of significant earnings improvement in this challenging economic environment. Our balance sheet continues to grow stronger each quarter, with improving cash flow, lower inventory levels, and reductions in debt. While the economic environment remains uncertain, I am confident that by continuing to revitalize our stores, while keeping a tight focus on expenses and inventories, we will not only weather this economic downturn, but strengthen our competitive position in both crafts and sewing.”
During the second quarter, the company opened three large-format stores and closed one large-format and six small-format stores. So far this year the company has opened three and closed two large-format stores and closed seven small-format stores. For the year, the company expects to open 21 new stores and close approximately 30.
During the quarter, 11 stores were remodeled with 22 having been remodeled year-to-date. Four of those were transitioned from a small-format to a large-format layout. Approximately 30 stores are expected to be remodeled for the year, five of which are expected to transition from a small-format to a large-format layout.
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