Jo-Ann Stores Q4 drops 26%, annual profit up

Hudson, Ohio Jo-Ann Stores said Wednesday it earned a lower fourth-quarter profit as same-store sales declined and crimped revenue.

Profit declined 26% to $20.4 million, from $27.5 million last year. Results in the most recent quarter included a five-cent gain linked to repurchasing some of the company's senior notes.

Sales declined 2% to $571.9 million from $585.9 million, as same-store sales slipped 2.9%.

For the year, profit rose to $21.9 million, from $15.4 million a year ago. Sales rose to $1.9 billion from $1.88 billion.

Darrell Webb, chairman, president and CEO, stated, "The successful execution of our strategic growth initiatives allowed us to deliver same-store sales growth, SG&A expense leverage, and a consistent margin rate, which resulted in increased earnings and strong free cash flow for fiscal year 2009. Additionally, our core sewing and crafts businesses continued to exhibit growth throughout the year, despite the deterioration in economic conditions.”