JOANN Inc, the nation’s leading provider in fabric and sewing supplies, boasting one of the most extensive assortments of arts and crafts products, released its third-quarter (Q3) fiscal year 2024 results concluding on October 28, 2023. Following the announcement the stock value of JOANN Inc experienced a significant decline today.
At the time of this publication, Joann Inc stock (JOAN) has witnessed a decline.
Joann Inc
Current Price: $0.62
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Chris DiTullio, JOANN’s Chief Customer Officer and co-lead of the Interim Office of the CEO, expressed satisfaction with the company’s performance amid a dynamic consumer landscape. DiTullio stated, “With continued progress and strong execution against our strategic priorities, we were pleased with our third quarter results. Loyal customers are engaging with us at a greater rate. We are winning in our core categories, and we entered the fourth quarter with very clean inventory quality.”
Q3 Results of JOANN Inc
– Net sales witnessed a 4.1% decline compared to the same period last year, totaling $539.8 million, with total comparable sales also decreasing by 4.1%. E-commerce sales, however, showed resilience, increasing by 11.5% compared to the previous year, constituting 13.1% of total company net sales—a significant 180-basis point increase in the penetration rate over the last year.
– Gross profit amounted to $282.1 million, marking a 0.4% increase compared to the third quarter of the previous year. The gross margin saw a substantial improvement, reaching 52.3%, a 240-basis point increase from the third quarter of the previous year.
– Selling, general, and administrative expenses experienced a 1.6% increase from the same quarter last year. The net loss for the quarter was $21.6 million, compared to a net loss of $17.5 million in the corresponding quarter of the previous year. Adjusted EBITDA stood at $37.5 million, a decline from $40.2 million in the same quarter last year.
– Cash used for operations saw an increase of $61.1 million, and free cash flow decreased by $38.1 million compared to the third quarter of the previous year. Diluted loss per share amounted to $0.51, compared to a loss of $0.43 in the same quarter last year. Adjusted diluted loss per share was $0.21, a contrast to diluted earnings per share of $0.06 in the same quarter last year.
Turning attention to the balance sheet:
– Long-term debt, net, was reported at $1,148.2 million as of October 28, 2023, with cash and cash equivalents totaling $28.3 million.
– Strategic inventory receipt reductions and lower ocean freight costs resulted in a 9.0% decrease in total inventory compared to the third quarter of the previous year.
– JOANN completed a sale and leaseback transaction for its Hudson facility, fetching a sale price of $34.5 million.
Looking ahead, JOANN provided insights into its full-year fiscal 2024 outlook:
– Net sales are expected to decline by 1% to 2%, inclusive of a 53rd week worth approximately 2%.
– Adjusted EBITDA is projected to be between $85 million and $95 million.
– Capital expenditures, net of landlord contributions, are estimated to be between $35 million and $40 million.
– Free cash flow is anticipated to witness year-over-year improvement between $115 million and $135 million.
