Jo-Ann Q4 profit up despite higher raw material costs
Jo-Ann Stores Inc announced financial results for its fiscal 2011 fourth quarter and full year ended January 29, 2011. Net income for the quarter was $40.4 million, or $1.53 per diluted share, versus net income of $37.1 million, or $1.36 per diluted share, for the fourth quarter last year.
Net income for the fourth quarter of fiscal 2011 includes expenses of $2.0 million after tax, or $0.07 per share, related to the pending acquisition by an affiliate of Leonard Green & Partners, L.P. announced on December 23, 2010. Excluding these expenses, net income for the fourth quarter of fiscal 2011 was $1.60 per share.
Net income for the fiscal year ended January 29, 2011, was $93.1 million, or $3.46 per diluted share, compared with net income of $66.6 million, or $2.51 per diluted share, in the prior year. Net income for fiscal year 2011 includes expenses of $2.0 million after tax, or $0.07 per share related to the pending merger. Excluding these expenses, net income for fiscal year 2011 was $3.53 per share.
Net sales for the fourth quarter increased 3.6% to $624.1 million from $602.2 million for the same period last year. Same-store sales increased 2.0% compared with a 4.4% same-store sales increase for the fourth quarter last year.
Large-format store net sales for the quarter increased 1.8% to $330.6 million compared to the same period last year. Same-store sales for large-format stores increased 0.7% compared with an increase of 3.1% in the fourth quarter last year. Small-format store net sales for the quarter increased 4.6% to $277.6 million compared to the same period last year. Same-store sales for small-format stores increased 3.8% compared with an increase of 6.1% in the fourth quarter last year. Internet sales through Joann.com increased 29.3% to $15.9 million for the fourth quarter compared to the same period last year.
Darrell Webb, chairman and chief executive officer stated, "Jo-Ann Stores achieved another quarter of strong performance to end a year of significant growth in fiscal 2011. Our record fourth quarter was driven by solid execution among our entire organization, which helped drive customers to our stores and delivered improved results despite the impact of unfavorable weather and raw material cost inflation.
“The new stores we opened in fiscal 2011 have been the strongest group of store openings relative to our sales projections since implementing our current store prototype. This performance continues to validate our long-term strategy for accelerating our store opening and remodeling activities for 2012 and beyond. We continue to believe that there are substantial opportunities to increase Jo-Ann Stores' sales, market share, and profitability as we execute on our growth plans over the coming years."
Net sales for the fiscal year ended January 29, 2011, increased 4.4% to $2.079 billion versus $1.991 billion in the prior year. Same-store sales increased 3.5% for the fiscal year compared with a 3.1% increase in the prior year.