Home / Knowledge / News / Textiles / Gross Margin improves by 200 basis points at Jo-Ann
Gross Margin improves by 200 basis points at Jo-Ann
28
May '10
Jo-Ann Stores, Inc. announced financial results for its fiscal 2011 first quarter ended May 1, 2010. Net income for the first quarter was $18.2 million, or $0.66 per diluted share, compared with net income of $8.6 million, or $0.33 per diluted share, for the first quarter last year. The prior year first quarter net income includes a $0.7 million after-tax gain, or $0.03 per diluted share, related to the purchase of a portion of the company's senior subordinated notes. Excluding this gain, net income for the prior year first quarter was $7.9 million, or $0.30 per diluted share.

Net sales for the first quarter increased 4.4% to $480.3 million from $460.0 million for the same period last year. Same-store sales increased 4.1% compared with a 1.0% same-store sales increase for the first quarter last year.

Large-format store net sales for the quarter increased 3.9% to $257.2 million compared to the same period last year. Same-store sales for large-format stores increased 1.9% compared with a decrease of 0.6% in the first quarter last year. Small-format store net sales for the quarter increased 4.9% to $212.8 million compared to the same period last year. Same-store sales for small-format stores increased 6.9% compared with an increase of 3.0% in the first quarter last year. Joann.com Internet sales for the quarter increased 8.4% to $10.3 million compared to the same period last year.

Darrell Webb, chairman and chief executive officer stated, "Our team delivered record financial results in the first quarter of fiscal 2011. Sales remained strong, even as we began to cycle positive sales results from the previous year. Our seasonal merchandise and custom framing categories, which struggled through the recession, delivered positive sales trends for the first time in two years. I was also pleased with our continuing progress on global sourcing and inventory management which contributed to our gross margin improvement." Webb concluded, "We believe Jo-Ann Stores is positioned for sustainable sales and margin growth as we execute our strategic initiatives."

Operating Results
Gross margins for the first quarter increased approximately 200 basis points to 50.5% from 48.5% in the first quarter of the prior year due to global sourcing efforts, improved inventory management of seasonal and clearance merchandise, and promotional markdown optimization.

Selling, general and administrative expenses for the quarter increased 2.6% to $195.4 million from $190.4 million for the same period last year. Selling, general and administrative expenses as a percentage of net sales improved by approximately 70 basis points to 40.7% compared to the same period last year due to expense leverage from the increase in sales as well as continued efforts to control expenses.

Operating profit for the first quarter was $30.6 million versus $14.9 million for the same period last year.

Balance Sheet
The cash balance at the end of the first quarter increased $75.7 million to $160.7 million compared to the end of the first quarter last year. The company had no debt outstanding at the end of the first quarter which was a reduction of $50.5 million compared to the end of the first quarter last year. This $126.2 million improvement in cash, net of debt, was primarily the result of cash generated from operations and improvements in working capital.


Must ReadView All

Union Minister for finance Arun Jaitley chairing the 25th GST Council meeting, flanked by minister of state for finance Shiv Pratap Shukla (right) and finance secretary Dr Hasmukh Adhia. Courtesy: PIB

Textiles | On 20th Jan 2018

GST rate on velvet fabric reduced to 5%

The 25th Goods and Services Tax (GST) Council meeting, held under the ...

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

Textiles | On 20th Jan 2018

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

The revenue from the petrochemicals segment at Reliance Industries...

Courtesy: Cotton USA

Textiles | On 20th Jan 2018

US cotton bodies pledge to support CCI activities

Ten US cotton organisations have pledged industry contributions in...

Interviews View All

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Headhonchos
Indian fashion industry

Organic the first choice of any environment-conscious person

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Urmil Arya

Sushila International, a well established textile organisation established ...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

January 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search