HUDSON, Ohio–Jo-Ann Stores posted a net loss of $11.7 million in its fiscal-year 2009 second quarter, down from the $18.4 million net loss it reported for the second quarter of last year.
Net sales for the fabric and craft retail chain rose 3.7 percent to $403 million, a result that included a 3.3 percent increase in same-store sales. In a company statement, Jo-Ann said sales of clearance merchandise declined, which helped improve its gross margins by 190 basis points in the second quarter, to 47.6 percent. In addition, selling, general and administrative expenses rose 1.9 percent on a dollar basis but fell by 90 basis points as a percentage of net sales, to 47.5 percent.
Jo-Ann also said that for all of fiscal 2009, it expects a same-store sales increase of 2 percent to 3.5 percent, along with continued improvements in both gross margins and selling, general and administrative expenses as a percentage of sales. The company also expects to open 21 new stores and close 30 stores for the entire fiscal year.
