Home no comfort for Jo-Ann in Q3
Staff Staff -- Furniture Today, November 16, 2004
HUDSON, Ohio — Home textiles was one of the weakest categories, along with floral and finished seasonal goods, at Jo-Ann Stores Inc. during its disappointing third quarter, the company reported during its earning call yesterday afternoon.
Home textiles experienced a mid-single-digit same-store sales decline, explained Alan Rosskamm, chairman and CEO.
"We experienced softness in home related categories," he explained. "For example, our fabric business overall was solid but weak in home textiles. In addition, our floral business was below expectations."
Halloween-related merchandise, he added, during the quarter had better sell-throughs and ended with fewer inventories versus last year's period, "but it still did not meet expectations."
Brian Carney, executive vice president and chief financial officer, noted that the company's home decorating businesses was down 2 percent on a same-store sales basis, "although margin rates were up in these categories. Our toughest was finished seasonal, which was down 6.5 percent on a same-store sales basis."
For the third quarter ended Oct. 30, the retailer's net income tumbled 39 percent to $7.3 million, or 32 cents per share. Sales were essentially flat – $448.3 million vs. $447.5 mill in last year's third quarter. Comps dipped 0.9 percent.
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