Fabric & craft retailer Jo-Ann Dec sales improve 4.6%
06 Jan '06
3 min read
Apparel and craft sewing fabrics' Jo-Ann Stores Inc reported that December net sales increased 4.6 percent to $273.5 million from $261.5 million in the same period last year.
December same-store sales decreased 0.5 percent compared to a same-store sales increase of 4.2 percent last year.
Year-to-date net sales increased 3.9 percent to $1.742 billion from $1.677 billion in the prior year.
Year-to-date same-store sales decreased 0.6 percent, versus a same-store sales increase of 2.9 percent for last year.
Performance Improvement Update
The Company is in the process of implementing its previously disclosed strategic transformation. At this time the primary focus is on inventory reduction and maximizing inventory sell-through.
In addition, in anticipation of a challenging year in fiscal 2007, the Company is undertaking several initiatives, which should impact the business over time:
-- Reduction in new store openings.
The Company expects to reduce the number of new store openings from 44 stores in fiscal 2006 to 25-30 stores in fiscal 2007, and defer other discretionary capital spending;
-- Adjustment of store merchandise assortments. The Company expects to reduce space and inventory investment in under-performing categories such as finished seasonal and home-decor, while emphasizing product categories, such as craft components.
-- Gross margin rate restoration. The Company expectsto reduce advertising spending, be more discrete with coupons, and take steps to reduce clearance through tighter purchasing disciplines.
marketing@alchempro.com
