Jo-Ann Stores, Inc. (JAS)

Jo-Ann stores, is a specialty retailer of crafts and fabrics, serving customers in their pursuit of apparel and craft sewing. Operating in a fragmented market with many fabric dealers, Jo-Ann is enjoying the tag of being the largest specialty retailer in the sector.





The company’s recent performance is little off the mark with its declined sales, but managed to get good gross margins. Its margins improved due to less promotional pricing strategy, better sell-through on seasonal goods, and reduced sales of clearance inventory. As against previous quarter company managed to keep fresh inventories in its stores and hopes for positive same store sales in the coming future. It is planning to open five 35,000-square-foot stores and one of the 25,000 store, to keep up with increasing number of footfalls. It is also under taking renovation project for 25 of its stores, since company’s sales are affected by season and changing fashion trends, a new look store should definitely give some push to its sales.





In the previous quarter company had announced its partnership with American greetings Corporation, which has an annual sales turnover of 41.8 billion. The company has already installed 29 stores of American greetings, and this store work will be done by April end. The effect of these new stores open can be seen in the second half of the year and will surely have a positive impact on the same store sales of the company. The company’s stock price hit its highest in march 2007 after the company declared its profit as compared to loss in its previous period. The stock has gained 15% year-to-date in 2007. Considering these on going improvements investors will see the stock perform in future.