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Jo-Ann Stores falls Q1 guidance
31 May '07
3 min read
Jo-Ann Stores Inc announced financial results for its fiscal 2008 first quarter ended May 5, 2007. Net loss for the first quarter of fiscal 2008 was $1.7 million, or $0.07 loss per diluted share, compared with a net loss of $6.6 million, or $0.28 loss per diluted share, in the prior year first quarter.
For the first quarter, net sales decreased 0.1% to $424.2 million from $424.7 million last year. Same-store sales increased 1.8% for the quarter, versus a same-store sales decrease of 3.9% in the first quarter last year.
Review of Operating Results:
Gross margins for the first quarter of fiscal 2008 increased 70 basis points to 47.3% from 46.6% primarily due to reduced sales of clearance inventory compared to the prior year.
Selling, general and administrative expenses decreased to $185.5 million, or 43.7% of net sales, in the first quarter of fiscal 2008 from $189.7 million, or 44.7% of net sales, in the first quarter last year.
Operating profit for the first quarter was $0.1 million, versus an $8.8 million operating loss for the prior year first quarter.
"The first quarter produced an important milestone, as we achieved positive same-store sales for the first time in six quarters, and also expanded our gross margin rate," said Darrell Webb, chairman, president, and chief executive officer.
"Our strategic plan is on-track and we continue to execute the initiatives designed to generate profitable and sustainable sales growth over the long term. While it is still early in the fiscal year, I am pleased with the progress we have made to improve the customer shopping experience, enhance our marketing and merchandising programs, and refine our capital investment strategy."
For the first quarter, net sales decreased 0.1% to $424.2 million from $424.7 million last year. Same-store sales increased 1.8% for the quarter, versus a same-store sales decrease of 3.9% in the first quarter last year.
Review of Operating Results:
Gross margins for the first quarter of fiscal 2008 increased 70 basis points to 47.3% from 46.6% primarily due to reduced sales of clearance inventory compared to the prior year.
Selling, general and administrative expenses decreased to $185.5 million, or 43.7% of net sales, in the first quarter of fiscal 2008 from $189.7 million, or 44.7% of net sales, in the first quarter last year.
Operating profit for the first quarter was $0.1 million, versus an $8.8 million operating loss for the prior year first quarter.
"The first quarter produced an important milestone, as we achieved positive same-store sales for the first time in six quarters, and also expanded our gross margin rate," said Darrell Webb, chairman, president, and chief executive officer.
"Our strategic plan is on-track and we continue to execute the initiatives designed to generate profitable and sustainable sales growth over the long term. While it is still early in the fiscal year, I am pleased with the progress we have made to improve the customer shopping experience, enhance our marketing and merchandising programs, and refine our capital investment strategy."
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