Jo-Ann Stores Reports Smaller 2Q Loss

HUDSON, Ohio (AP) — Fabric and craft retailer Jo-Ann Stores Inc. on Wednesday reported a far smaller loss than analysts predicted as sales improved.

Its loss for the three months ended Aug. 1 totaled $3.2 million, or 13 cents per share, compared with a loss of $11.7 million, or 47 cents per share.

Revenue rose 4 percent to $419.4 million from $403.0 million a year ago.

Analysts polled by Thomson Reuters, on average, expected a loss of 39 cents per share on revenue of $419.4 million.

Sales in stores open at least one year, a key retail metric known as same-store sales, edged up 0.1 percent at large-format stores and rose 3.9 percent at small-format stores.

"Jo-Ann Stores achieved strong financial improvement in the second quarter of fiscal 2010 through continued sales growth, margin expansion, and expense leverage," said Darrell Webb, company chairman, president and CEO.

The company also raised its outlook for the year.

Its shares rose $1.85, or 7 percent, to $27.50 in aftermarket trading.