Jo-Ann raises 2009 outlook, sees 3Q above Street

HUDSON, Ohio (AP) — Craft store operator Jo-Ann Stores Inc. on Thursday raised its full-year earnings outlook and estimated third-quarter results well above analyst projections.

Shares jumped $2.80, or 10.3 percent, to $30 during morning trading. The stock has traded between $10.31 and $31.32 during the past 52 weeks.

For the year, the company now expects earnings of $1.95 to $2.05 per share, excluding one-time items, up from a previous forecast of $1.35 to $1.50 per share. Analysts polled by Thomson Reuters predict profit of $1.48 per share.

The retailer expects third-quarter earnings of 88 cents to 90 cents per share, while analysts forecast profit of 45 cents per share.

Jo-Ann Stores said total sales for the third quarter rose 6 percent to $509.1 million from $480.1 million. Analysts predicted revenue of $493.7 million.

For the year, the company predicts sales in stores open at least one year will rise 2.3 percent to 2.7 percent, compared with previous expectations of a 1 percent gain. The company said sales at stores open at least a year grew 4.3 percent in the third quarter.

Sales at stores open at least a year are a key measure of retailer performance, because they measure growth at existing stores rather than from newly opened ones.