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Jo-Ann Year-end Report
Posted by: admin | March 12, 2007
According to Darrell Webb, chairman, president, and ceo, Jo-Ann Stores made progress on merchandising strategies and inventory position during the fourth quarter of the year ended February 3. “While our actions have resulted in a decline in same-store sales,” he says, “we were able to realize significant gross margin improvement in the fourth quarter compared to the same period last year. Our strategic plan is gaining traction, evidenced by the expansion in margins, improvement in earnings and debt reduction, as we shift our focus to achieving profitable sales. I am confident that by enhancing the customer shopping experience and product assortment, implementing supply chain efficiencies, and capitalizing on competitive opportunities, Jo-Ann’s will be well positioned to sustain profitable growth in the coming years.”
Net earnings for the fourth quarter of fiscal 2007 were $25.8 million, or $1.05 per diluted share, compared to a net loss of $18 million or $0.78 loss per diluted share in the previous year’s fourth quarter.
Fiscal 2007 included 53 weeks of operations compared to 52 weeks in fiscal 2006, with the additional week falling in the fourth quarter of fiscal 2007. Fiscal 2006 results for the fourth quarter included a charge of $27.1 million for goodwill impairment.
For the fourth quarter, net sales decreased 0.5 percent to $600.8 million from $604.1 million last year. On a comparable 13-week basis, fourth quarter same-store sales decreased 6 percent. The decrease in sales was impacted by planned reductions of holiday inventory and less clearance merchandise in the stores.
Net loss for the year was $1.9 million, or $0.08 loss per diluted share, compared with a net loss of $23 million or $1.01 loss per diluted share in fiscal 2006.
Net sales for the fiscal year decreased 1.7 percent to $1.851 billion from $1.883 billion last year. On a comparable 52-week basis, same-store sales decreased 5.9 percent.
During the past year, the company opened 21 superstores and five traditional stores, and closed 61 traditional stores and two superstores. At year-end, the store count was 628 traditional stores and 173 superstores. During this current fiscal year, the company anticipates opening six new stores, 25 remodels, and closing approximately 20 existing stores.
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