Jo-Ann Stores posts Q4 profit surge as sales gain

Hudson, Ohio Jo-Ann Stores posted an 82% surge in fourth-quarter profit, boosted by cost-cutting and higher sales across its product lines.

For the three months that ended Jan. 30, the company earned $37.1 million compared with $20.4 million a year earlier.

Sales rose 5% to $602.2 million, from $571.9 million.

Jo-Ann said fourth-quarter sales in its large-format stores rose 8% to $323.8 million. Small-format store sales rose 3% to $266.1 million. Internet sales were flat with the prior year at $12.3 million.

Same-store sales rose 4.4% in the quarter, reversing a 2.9% decline a year earlier.

The company kept its expenses in check during the period. The cost of sales dipped 2% to $315.8 million as prices declined. The company also had lower clearance levels and reduced freight costs. Selling, general and administrative expenses rose 4% to $207.9 million.

During the quarter, Jo-Ann opened one small-format store and closed one large-format store and 12 small stores. It also remodeled four stores, including one that was shifted to large-format from small.

For the fiscal year, Jo-Ann Stores earned $66.6 million, compared with $21.9 million the year before.

Jo-Ann operates about 746 stores nationwide and expects to open approximately 30 new stores and close about 30 others this year. It also plans to remodel at least 40 stores, and it forecast capital expenditures of about $50 million.