Jo-Ann Stores quarterly loss narrows

HUDSON, Ohio Jo-Ann Stores today reported a net loss of $18.4 million, or 76 cents per diluted share, for the second quarter ended Aug. 4, compared with a net loss of $21.2 million, or 90 cents per diluted share in fiscal 2007.

Net sales for the second quarter increased 7% to $388.5 million from $363.2 million in the prior year. Same-store sales increased 7% versus a decrease of 8.4% for the same period last year.

Large-format stores net sales for the quarter increased 15.4% to $199.1 million from $172.5 million last year. Same-store sales for large-format stores increased 9.2%, versus a decrease of 10.5% for the same period last year. Small-format stores net sales of $189.4 million were flat compared to last year. Same-store sales performance for small-format stores increased 4.8% versus a decrease of 6.7% for the same period last year.

"We are encouraged by our sales momentum," said Darrell Webb, chairman, president, and ceo. "We continue to execute the various elements of our strategic plan with positive results, including enhancements to advertising and merchandise assortments, repositioning inventory, and improving our in-store shopping experience. While some of these initiatives have impacted margins in the short term, we remain confident in our ability to deliver balanced sales and margin expansion while driving profitable growth over the long term."

Net sales for the six-month period ended Aug. 4 were $812.7 million versus $787.9 million in the prior year. Same-store sales increased 4.2% for the six-month period versus a 6% decrease for the same period last year.

Large-format stores net sales for the six-month period increased 12.3% to $414.3 million from $368.9 million last year. Same-store sales for large-format stores increased 5.9%, versus a 9% decrease in the prior year. Small-format stores net sales for the six-month period decreased 4.9% to $398.4 million from $419 million last year. Same-store sales performance for small-format stores increased 2.7% versus a 3.9% decrease in the prior year.

The company said it expects year-over-year improvement in business performance in fiscal 2008. This includes earnings per diluted share in the range of 60 cents to 70 cents.