Joann Inc. Reports Strong Quarterly Sales Growth


Joann Inc., the renowned arts-and-crafts retailer, witnessed a significant surge in its shares, reaching almost 20% during extended trading on Monday. The company attributed this boost to early Halloween item sales and its curated collection of dorm décor, which resulted in higher quarterly sales.

According to Chris DiTullio, Joann’s executive, the second-quarter outcomes were bolstered by unique opportunities exclusive to Joann. DiTullio mentioned the early delivery of Halloween products and the retailer’s specialized home-decorating line targeting college students. As a result, July marked the strongest month in terms of sales in over two years.

DiTullio emphasized that Joann remains committed to its strategy of excelling in core textile- and craft-related categories. As of now, Joann’s interim office of the CEO is led by DiTullio and the chief customer officer, following the retirement of former CEO Wade Miquelon in May. No successor has been announced yet.

In terms of financial performance, Joann reported a net loss of $73.3 million, equivalent to $1.76 per share, for the fiscal second quarter. This is compared to a loss of $56.9 million, or $1.40 per share, from the previous year. After adjusting for one-time items, the company’s loss stood at $1.44 per share. Analysts surveyed by FactSet predicted a slightly lower adjusted loss of $1.15 per share for the quarter.

Despite a decline of 2.1% in overall sales, with revenues totaling $453.8 million, Joann managed to exceed FactSet’s consensus estimate of $438 million. While comparable-store sales saw a 2% decrease, e-commerce sales experienced a 3% growth and accounted for 12% of Joann’s second-quarter revenue.

It is worth noting that Joann’s shares have witnessed a significant drop of nearly 60% year-to-date, which contrasts sharply with the 15% increase observed in the S&P 500 index SPX. Nonetheless, the recent positive quarterly results indicate a potential turnaround for the company.

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