HUDSON, Ohio–JoAnn Stores, the chain of textiles, fabric and craft shops, reported a gain of 6.6 percent during the fourth quarter ended Feb. 2, compared with the same period the year before. The quarterly gain, which translated into a 4.8 percent increase of $1.10 per diluted share, was realized on declining revenues.
Net sales for the period, at $585.9 million, were down 2.5 percent.
In a statement, the retailer noted that selling, general and administrative costs were also down more than 6 percent in the period. It attributed the improved expense performance to Web-based retailing. “The addition of sales from Joann.com, which has a lower expense structure than the retail stores, contributed to the improved leverage,” the company explained.
Darrell Webb, chairman, president and chief executive officer, said that although the next fiscal year “will be somewhat unpredictable due to the economic environment,” the chain can weather a downturn in part because of declining competition and “the higher-income demographic of our customers.”
The company expects same-store sales during the year to grow 1 percent to 3 percent.
