Jo-Ann Stores Inc announced financial results for its fiscal 2007 third quarter ended October 28, 2006. Net earnings for the third quarter of fiscal 2007 were $0.1 million, or $0.00 per share, compared with a net loss of $4.1 million, or $0.18 per share in the prior year third quarter.
Net sales for the third quarter were $461.9 million compared to $474.2 million in the prior year. Same-store sales decreased 5.4 percent versus an increase of 0.7 percent in same-store sales for the third quarter last year.
The decrease in sales was impacted by lower fall and Halloween seasonal merchandise purchases, less clearance merchandise in the stores and a reduction in advertising expenditures versus last year for comparable stores.
Net sales for the nine-month period ended October 28, 2006 were $1.25 billion versus $1.28 billion in the same period in the prior year. Year-to-date same-store sales decreased 5.8 percent, compared with a same-store sales increase of 0.3 percent last year.
Review of Operating Results Gross margins for the third quarter of fiscal 2007 increased 180 basis points from 45.6 percent to 47.4 percent due to a less promotional pricing strategy, better sell-through on seasonal goods and reduced sales of clearance inventory.
Selling, general and administrative expenses increased to 43.0 percent of net sales in the third quarter of fiscal 2007 from 42.0 percent in the third quarter last year.
While total selling, general and administrative expenses are below last year's spending levels, the increase as a percentage of net sales is due to the lack of leverage resulting from lower sales.
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