Jo-Ann Stores' 1st-qtr profit more than doubled

HUDSON, Ohio (AP) — Fabric and craft retailer Jo-Ann Stores Inc. said Wednesday that its profit more than doubled in its fiscal first quarter and it reaffirmed its earnings outlook for fiscal 2010.

For the quarter that ended May 2, net income jumped to $8.6 million, or 33 cents per share. Excluding a one-time gain of 3 cents per share related to the purchase of some senior notes, Jo-Ann's profit would have totaled $7.9 million, or 30 cents per diluted share.

Analysts polled by Thomson Reuters, who generally exclude one-time items, forecast a profit of 11 cents per share.

A year earlier, the company earned $3 million, or 12 cents per share.

Sales grew 3 percent during the quarter to $460 million, while same-store sales, or sales open at stores at least a year, rose 1 percent. Same-store sales are a key indicator of retailer performance since they measure growth at existing stores rather than newly opened ones.

"We are benefiting from our sharp focus on controlling costs and generating operating efficiencies and we expect to further leverage these improvements as the economy rebounds," said Chairman, President and Chief Executive Darrell Webb in a statement.

The company said its gross margins increased during the quarter on reduced product costs, lower clearance levels and reduced freight costs. Selling, general and administrative expenses, however, rose 3 percent to $190.4 million.

For the full fiscal year, Jo-Ann affirmed its previous forecast for an adjusted earnings range of 70 cents to 85 cents, which excludes any gains on debt purchases. The company expects same-store sales to decline between 2 percent and 4 percent for the year.

Analysts expect a profit of 90 cents per share.

Jo-Ann Stores shares gained 44 cents, or 2.1 percent, to $21.90 in after-hours trading, after losing 25 cents to $21.46 during the regular session. The stock has traded between $10.31 and $27 during the past 52 weeks.