Shares of Joann Inc. fell more than 12% in the extended session Monday after the crafts retailer reported a wider fiscal third-quarter loss and sales that dropped 4%, failing to meet Wall Street’s expectations.
Joann
JOAN,
lost $21.6 million, or 51 cents a share, in the quarter, compared with a loss of $17.5 million, or 43 cents a share, in the year-ago quarter. Adjusted for one-time items, Joann lost 21 cents, which matched the FactSet consensus.
Sales fell 4.1% to $539.8 million, the company said. FactSet consensus called for sales of $547 million. Same-store sales also dropped 4.1%, including a jump of 11.5% for e-commerce sales, Joann said.
“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,” Chief Customer Officer and co-interim Chief Executive Chris DiTullio said in a statement. “Loyal customers are engaging with us at a greater rate.”
Joann said it expects sales for fiscal-year 2024 to be down 1% to 2%, including the benefit of an extra week. In August, the company called for a drop between 1% and 3%, also including the extra week.
Shares of Joann have lost 69% in the year to date, contrasting with gains of around 19% for the S&P 500 index
SPX.
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