Shares of Joann Inc (NASDAQ:JOAN) closed sharply higher on Friday and made a new 52-week high following quarterly earnings.
Major Trigger:
Joann Announced First Quarter Fiscal Year 2022 Results
Key Highlights:
- Net sales increased 15.0% compared to the same period last year, to $574.4 million, with total comparable sales also increasing 15.0%. On a two-year stack, total comparable sales increased by 13.0%
- Gross margin increased 23.1% compared to the same period last year, to $302.7 million, at a rate to net sales of 52.7% or up 350 basis points compared to the same period last year.
- Net income was $15.1 million compared to a loss of $23.6 million in the same period last year.
- Adjusted EBITDA increased 165% compared to same period last year, to $57.5 million, or 10.0% as a percentage of net sales compared to 4.3% as a percentage of net sales for the same period last year.
- Working capital efficiency continues to improve, with inventories at $539.3 million as of May 1, 2021, a decrease of $75.1 million or 12.2% from May 2, 2020.
Key Quote from Wade Miquelon, JOANN’s President and CEO
Wade Miquelon, JOANN’s President and Chief Executive Officer, said, “Our first quarter performance is a strong indication of the sustained momentum we have in our business coming off our record performance in fiscal year 2021. The strength of the JOANN brand and compelling in-store experience continue to resonate with our core customer while also attracting new enthusiasts.
Market Reaction: Stock Jumped On Unusual Volume
JOAN stock ended higher by 19% to close at $16.92 in Friday’s trading higher. Total volume stood at 1.79 million shares, well above its average volume of 579K shares. Moreover, JOAN stock made a new 52-week high of $17.99.
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