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Joanne earnings drop; freight costs jump

Joann had to absorb nearly $60 million in increased ocean freight costs last year.

Joann Inc. was challenged by increased freight costs and other supply chain disruptions during its first full year as a public company.

The fabric and arts and crafts retailer earned $13.6 million, or $0.32 per share, for the quarter ended Jan. 29, compared with $38.3 million, or $1.06 a share, in the year-ago period. Analysts had expected earnings per share of $0.98. Net income increased by $371.7 million compared to the same quarter two years ago.

Net sales fell 12.5% to $735.3 million, topping estimates. Total comparable sales fell 12.4%. On a two-year stack, total comparable sales increased 6.0%.

Full-year net sales increased by 7.9% to $2.4 billion and comparable sales grew by 8.3% compared to two years ago.

In a statement, CEO Wade Miquelon said the company faced "significant supply-chain headwinds and disruptions" during the past year, including fully absorbing close to $60 million of higher ocean freight costs. Despite the challenges, Joann’s top-line improved by 8% compared to pre-pandemic levels, he added.

Joann operates 848 stores across 49 states.

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