Fabric retailer Jo-Ann Stores declares July sales results

August 05, 2005 - United States Of America

Hudson based fabric retailer Jo-Ann Stores Inc reported July net sales were $117.4 million versus $114.1 million in the same period last year. July same-store sales decreased 1.5 percent versus a 0.2 percent same-store sales decrease last year.

For the second quarter ended July 30, 2005, net sales increased 3.5 percent to $383.8 million from $371.0 million in the prior year. Same-store sales for the second quarter decreased 0.5 percent versus a 3.1 percent same-store sales increase for the second quarter last year.

Net sales for the six-month period ended July 30, 2005 were $804.5 million versus $775.9 million in the same period in the prior year. Year-to-date same-store sales grew 0.1 percent, compared to a same-store sales increase of 4.9 percent in the same period a year ago.

Based on preliminary results for the second quarter ended July 30, 2005, the Company now expects a loss in the range of $0.22 to $0.24 per share, versus previous guidance of a loss of $0.10 to $0.15 per share. The Company will report actual second quarter results on August 15, 2005. The Company attributed the change in its second quarter earnings guidance to softer than anticipated sales, particularly in the month of July.

Fiscal 2006 Second-Half Outlook

The Company lowered its full-year fiscal 2006 earnings guidance to a range of $1.65 to $1.75 per diluted share. This revision in full-year earnings guidance is attributable to reduced earnings guidancefor the second quarter as well as a revision to expectations for the second half of the year. Earnings for the second half are estimated to be in the range of $1.70 to $1.80 per diluted share versus a $1.70 per diluted share for the comparable period of the prior year.

This revised guidance is based on same-store sales growth of 3 percent to 4 percent for the second half of the year, with stronger same-store sales anticipated in the third quarter. The Company also indicated that the second half earnings guidance includes the estimated impact of incremental store pre-opening and closing costs resulting from the increased number of expected store openings year-over-year, which the Company estimates will negatively impact second half estimated results by approximately $0.12 per share.

US based Jo-Ann Stores Inc the leading national fabric and craft retailer with locations in 47 states, operates 716 Jo-Ann Fabrics and Crafts traditional stores and 131 Jo-Ann superstores.