Joann's stock rallies 20% as early Halloween, dorm décor offerings lift retailer's quarter

By Claudia Assis

Quarterly sales top Wall Street expectations

Joann Inc. shares jumped nearly 20% in extended trading Monday after the arts-and-crafts retailer said that early Halloween items and its line of dorm décor lifted quarterly sales.

The company's fiscal second-quarter results benefited from "several opportunities that are unique to Joann," such as early delivery of Halloween products and the retailer's "curated" home-decorating collection geared toward college students, Joann's executive Chris DiTullio said in a statement.

Second-quarter sales built up and July was the strongest topline month in more than two years, he said.

"We remain focused on a strategy to win in our core textile- and craft-related categories," said DiTullio, the company's chief customer officer and co-lead of the interim office of the CEO. Joann's CEO Wade Miquelon retired in May, and a successor has not been named.

Joann (JOAN) lost $73.3 million, or $1.76 a share, in the fiscal second quarter, compared with a loss of $56.9 million, or $1.40 a share, a year ago.

Adjusted for one-time items, the company lost $1.44 a share. Analysts polled by FactSet expected an adjusted loss of $1.15 a share in the quarter.

Sales fell 2.1% to $453.8 million, but were ahead of FactSet consensus of $438 million.

Comparable-store sales dropped 2%, while e-commerce sales rose 3% and accounted for 12% of Joann's second-quarter revenue, the company said.

Joann shares have dropped nearly 60% year to date, contrasting with an advance of about 15% for the S&P 500 index SPX.

-Claudia Assis

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08-28-23 1654ET