Jo-Ann Cuts Outlook as Fabrics Slide

Home décor fabric was one of the "negative categories" in the third quarter for craft and fabric retailer Jo-Ann Stores.

The 768-store company last week reported third quarter net income of $10.2 million, improved from $8.0 million in the year-ago period. Sales were flat at $480.1 million, while comps edged down 1.5%.

Jo-Ann has made strides in cutting its SG&A costs, according to James Kerr, evp and cfo, who also told analysts that the chain's small-format stores, in the majority at 560 units, have greatly outperformed the large format models in year-to-date comps.

Touching on the slowdown in sales of home décor fabric, Kerr also noted that Jo-Ann is at least matching its competitors in discounting "earlier, deeper" in seasonal goods, which remains the retailer's toughest category.

Jo-Ann now projects flat comp sales for the full year, down from previous guidance of a 2.0% - 3.5% comp gain. Earnings per share are now foreseen in the range of 75-85 cents, vs. earlier guidance of 95 cents to $1.05.

Featured Video

  • 1200 Suppliers are Ready for You at Intertextile Shanghai

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.

CURRENT ISSUE

HTT August 2017

See the August 2017 issue of Home & Textiles Today. In this issue, we look at the Top 50 Retailing Giants Report, plus Manufacturing: Made in the USA gaining ground; International: Portugal ramping up exports; New products: NY Now home textiles introductions; Outlook: Commentary from H&TT's editors; and Planning: Trade show calendar.

See details!