Fabric retailer Jo-Ann same-store sales drop 0.5% in Q2
16 Aug '05
4 min read
Alan Rosskamm, chairman and chief executive officer commented, "Thye expected the second quarter to be challenging. It is historically their lowest-volume quarter of the year, which makes it difficult to cover their fixed costs. Soft store traffic, coupled with ongoing industry-wide weakness in the home-related retail sector, resulted in a sales performance that did not meet their targets for the quarter. Additionally, they responded to the softer traffic patterns with more aggressive promotions that negatively impacted gross margin performance for the quarter."
Operating profit for the six-month period was $3.1 million, versus $18.4 million in operating profit for the first half of the prior year.
The Company opened six superstores and one traditional store in the second quarter and closed nine traditional stores. Subsequent to the end of the second quarter, the Company has opened an additional f their superstores. Year-to-date, the Company has opened 21 superstores and two traditional stores, and closed 27 traditional stores. For the balance of the year, the Company expects to open 19 superstores, two traditional stores, and close 25 to 30 traditional stores.
Mr. Rosskamm continued, "Macro trends aside, they have been working diligently on fresh merchandising and marketing programs aimed at their fall and holiday selling seasons that should translate into improved sales trends for the second half. In addition, they will have the benefit of 40 additional superstores as they enter the f their th quarter. Consequently, I am confident that they can deliver improved earnings in the second half of this year, while also preparing the Company next phase of accelerated growth in the years beyond."
marketing@alchempro.com
