Fabric retailer Jo-Ann Stores forecasts decline in gross margin for fiscal 2006
07 Nov '05
2 min read
Apparel and craft sewing fabrics retailer Jo-Ann Stores Inc reported that October net sales increased 8.8 percent to $174.6 million from $160.5 million in the same period last year. October same-store sales increased 3.4 percent compared to a same-store sales decrease of 0.3 percent last year.
The Company indicated in its October 5, 2005 press release that it expected same-store sales could range from a decline of 2 percent to an increase of 2 percent for the remaining four months of fiscal 2006. Furthermore, the Company estimated that the gross margin rate in the third and fourth quarters of fiscal 2006 could decline 150 to 250 basis points versus the same period last year.
Although October same-store sales were better than the Company's previously communicated expectations, the Company experienced substantial gross margin rate deterioration compared with the same period last year. The Company estimates the gross margin rate for the third quarter will be within its previously estimated range.
For the third quarter, net sales increased 5.8 percent to $474.2 million from $448.3 million for the same period last year. Same-store sales increased 0.7 percent for the quarter, versus a same-store sales decrease of 0.9 percent for the same period last year.
Year-to-date net sales increased 4.4 percent to $1.28 billion from $1.22 billion in the prior year. Year-to-date same-store sales increased 0.3 percent, versus a same-store sales increase of 2.7percent for the same period last year.
marketing@alchempro.com
