On Aug. 29, Jo-Ann Stores (NYSE:JAS) released fiscal second-quarter 2008 earnings for the period ended Aug. 4.

  • Total sales jumped 7% to $388.5 million, with comps also rising 7%, thanks to an easy comparison.
  • Earnings improved slightly at Jo-Ann Stores, but remained stitched deep in negative territory, with losses of $18.4 million, or $0.76 per share.
  • Despite the massive losses, the company increased its full-year earnings outlook to a range of $0.60 to $0.70 per share.
  • The Fool community is less confident about Jo-Ann's prospects, giving it a one-star rating (out of a possible five) in Motley Fool CAPS.

(Figures in millions, except per-share data.)

Income Statement Highlights

Q2 2008

Q2 2007

Change

Sales

$388.5

$363.2

7%

Net Profit

($18.4)

($21.2)

N/A

EPS

($0.76)

($0.90)

N/A

Diluted Shares

24.3

23.5

3.7%

Get back to basics with the income statement.

Margin Checkup

Q2 2008

Q2 2007

Change*

Gross Margin

45.7%

47.4%

(1.8)

Operating Margin

(6.7%)

(8.1%)

N/A

Net Margin

(4.7%)

(5.8%)

N/A

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q2 2008

Q2 2007

Change

Cash + ST Invest.

$16.7

$15.3

9.2%

Inventory

$507.9

$511.3

(0.7%)

Liabilities

Q2 2008

Q2 2007

Change

Accounts Payable

$178.5

$166.5

7.2%

Long-Term Debt

$159.0

$225.0

(29.3%)

The balance sheet reflects the company's health.

Cash Flow Highlights
Hey, Jo-Ann, how about a cash flow statement? No? Bummer.

Free cash flow is a Fool's best friend.

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Fool contributor Mike Cianciolo held no position in Jo-Ann Stores. The Fool's disclosure policy is handy with a needle and thread.