Shares of Joann Inc. dropped over 12% in after-hours trading on Monday following the crafts retailer’s disappointing fiscal third-quarter results. The company reported a wider loss and a 4% decrease in sales, failing to meet Wall Street’s expectations.
Financial Performance
In the quarter, Joann incurred a loss of $21.6 million, or 51 cents per share, compared to a loss of $17.5 million, or 43 cents per share, in the same period last year. After adjusting for one-time items, the company’s loss stood at 21 cents per share, which matched the FactSet consensus.
Joann’s sales totaled $539.8 million, experiencing a decrease of 4.1% from the previous year. This figure fell short of the FactSet consensus of $547 million. Same-store sales also declined by 4.1%, despite e-commerce sales increasing by 11.5%.
Strategic Progress and Outlook
Despite the underwhelming financial results, Chief Customer Officer and Co-Interim Chief Executive Chris DiTullio expressed satisfaction with the company’s performance, stating, “With continued progress and strong execution against our strategic priorities, we were pleased with our third-quarter results in what remains a dynamic consumer environment. Loyal customers are engaging with us at a greater rate.”
Looking ahead, Joann expects sales for fiscal-year 2024 to decline by 1% to 2%, including the benefit of an additional week. This projection aligns with its previous forecast made in August, which also accounted for the extra week.
Market Reaction
Shares of Joann have experienced a significant decline of 69% year-to-date. This contrasts sharply with the approximately 19% gains seen in the S&P 500 index.
Overall, Joann’s latest quarterly results reflect the challenges faced in the crafts retail industry. The company will need to focus on strategic initiatives to regain investor confidence and drive future growth.
