HUDSON, Ohio–Jo-Ann Stores posted a net loss for its fiscal second quarter of $3.2 million, significantly less than the $11.7 million of red ink the fabric and crafts retailer reported for the second quarter of last year.
The key factor was a 4.1 percent rise in the company’s net sales, which totaled $419.4 million. This included a 7.7 percent increase in net sales at Jo-Ann’s large-format stores. Same-store sales rose 1.8 percent in the quarter. On the expense side, the company reported marginal increases in both selling, general and administrative expenses and cost of goods sold, leading to both a 170-basis point improvement in operating margin and a drastic reduction in operating loss.
Darrell Webb, Jo-Ann’s chairman, president and chief executive officer, said continued sales growth and margin expansion, along with better expense management, provided the fuel to Jo-Ann’s improved second quarter. Webb said the retailer continues “to plan cautiously for the remainder of fiscal 2010,” but expressed confidence that sales and earnings will exceed the company’s original expectations for the year.