Fabric retailer Jo-Ann same-store sales drop 0.5% in Q2
16 Aug '05
4 min read
Nation's leading fabric and craft retailer Jo-Ann Stores Inc reported the financial results for its fiscal 2006 second quarter ended July 30, 2005. Net loss for the quarter was $5.1 million, or $0.23 loss per diluted share, compared with net income of $0.3 million, or $0.01 per diluted share in fiscal 2005.
Net sales for the second quarter increased 3.5% to $383.8 million from $371.0 million in the prior year. Same-store sales decreased 0.5% versus a 3.1% same-store sales increase for the same period last year.
Net sales for the six-month period ended July 30, 2005 were $804.5 million versus $775.9 million in the same period in the prior year. Year-to-date same-store sales grew 0.1%, compared to a same-store sales increase of 4.9% in the same period a year ago.
Results for the prior year reflect the necessary adjustments to restate the Company's accounting for leases, as discussed in the Company's 2005 Annual Report on Form 10-K.
Review of Operating Results Operating loss for the second quarter was $5.7 million, or 1.5% of net sales, versus an operating profit of $3.9 million, or 1.1% of net sales, in the prior year's second quarter.
Gross margins for the quarter decreased to 48.2% of net sales from 49.0% in the second quarter last year, due to a more promotional environment that resulted in reduced selling margins.
Selling, general and administrative expenses, excluding other expenses separately identified in the statementof operations, increased to 45.9% of net sales in the second quarter from 43.1% in the same quarter last year. The increase in percentage is due to the lack of leverage from same-store sales results, coupled with an increase in advertising and distribution costs.
marketing@alchempro.com
