Top Performer for Thurs: Jo-Ann Stores (JAS)

We're going to stick with retailers a little while longer and today highlight Jo-Ann Stores, Inc. (JAS - Snapshot Report), a home decorating and crafts company that just surprised in its fiscal second quarter while boosting its full-year outlook.

Shares of this Zacks #1 Rank Top Performer are up approximately 9% Thursday. Volume is well above normal at about 715,000 shares, compared to the daily average of 187,000.

JAS is 1 of 4 companies from the retail-miscellaneous/diversified industry on today's Zacks #1 Rank List, which includes 229 stocks in total. The other 3 companies are Dick's Sporting Goods, Inc. (DKS - Snapshot Report), Dover Saddlery, Inc. (DOVR - Snapshot Report) and Tractor Supply Company (TSCO - Analyst Report).

Fiscal Second Quarter Results

Yesterday, JAS announced a loss per share of 13 cents in its fiscal second quarter. This loss was narrower than both the year-ago loss of 47 cents, and the Zacks Consensus Estimate for a loss of 39 cents.

Meanwhile, net sales advanced 4.1% to $419.4 million from $403 million, which sets JAS apart from many retailers who are beating quarterly profit expectations but still suffering through steep year-over-year declines in revenue.

Same-store sales were up 1.8%.

The company gave credit for its quarterly performance to continued sales growth, margin expansion and expense leverage.

"We continue to plan cautiously for the remainder of fiscal 2010, but our progress in the first half leaves us confident that sales and earnings will exceed our original expectation for the full year," said Chairman/President/CEO Darrell Webb.

Fiscal 2010 Outlook

JAS is so confident in its full year performance that it raised its EPS guidance to between $1.35 and $1.50, compared to its previous outlook of 70 cents to 85 cents. The company also expects same-store sales to be flat to up 1%.

Earnings Estimates

The Zacks Consensus Estimate for the fiscal year ending January 2010 is currently at $1.08 per share, which is up 9% over the past month. For next fiscal year, the Zacks Consensus Estimate has advanced to $1.37 from $1.29 - an improvement of 6.2% in the past 30 days. The result also suggests year-over-year profit growth of as much as 27%.