Jo-Ann Stores, Inc.

Jo-Ann Stores, Inc. (JAS) raised its full year EPS guidance in August despite a tough economic environment. JAS has surprised on estimates 3 out of the last 4 quarters by an average of 381.03%. Jo-Ann Stores has a forward P/E of 12.01.

Company Description

Jo-Ann Stores operates fabric and craft stores with locations in 47 states and through its web site, joann.com. The company sells apparel and craft sewing, crafting, home decorating and other creative products including fabrics, buttons, thread, crafts, frames, home accents and home decor merchandise.

The company consists of 578 small-format and 196 large-format stores with the large format stores offering more merchandise, custom framing and educational programs.

Sales Rise 3.7% in the Second Quarter

On Aug 27, Jo-Ann Stores announced second-quarter earnings that beat Wall Street estimates by 28.79%, or 19 cents per share. The company reported a net loss of $11.7 million, or 47 cents, compared to a loss of $18.4 million, or 76 cents, a year ago. Analysts were looking for a loss of 66 cents per share.

Sales rose 3.7% to $403 million from $388.5 million in the prior year. Same store sales jumped 3.3% year-over-year. Both large-format and small-format stores saw sales grow. Large-format rose 3.1% while small-format gained 4.4%.

Jo-Ann Stores Raises 2009 Guidance

Despite a challenging economic environment for retailers, Jo-Ann Stores is still optimistic about fiscal 2009. In late August, the company said it expects same-store sales growth of 2% to 3.5% for the year. JAS is keeping a tight focus on expenses and inventories in order to weather the retail storm.

It also raised its earnings per share forecast to the range of 95 cents to $1.05 for the year compared to a previously announced guidance range of 75 cents to 85 cents.

Consensus Estimates Rise for the Full Year

In response to the second-quarter earnings results and guidance outlook, covering analysts have raised full year estimates to $1.09 from 92 cents in the last 2 months. That is above the high end of the company's guidance of $1.05.

Third-quarter estimates have trended lower by a penny in the last 60 days, falling to 31 cents.

JAS reports third-quarter earnings on Nov 26.

Value Fundamentals

Jo-Ann Stores has a forward P/E of 12.01. Its price-to-book is only 0.86. Analysts expect fiscal 2009 year-over-year earnings growth of 76.34%.

Read the full analyst report on JAS