On March 6, Jo-Ann Stores (NYSE:JAS) released Q4 2006 earnings for the period ended Jan. 28, 2006.

  • Sales of $604 million beat estimates. They represent 2.7% growth over the prior-year quarter.
  • Margins dropped across the board on lower selling prices and higher fixed costs for the new store format.
  • The loss includes the effect of a $1.17-per-share charge for goodwill impairment, as well as an $0.08-per-share benefit for "gift card breakage."

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q4 2006

Q4 2005

% Change

Sales

$587

$604

$588

2.7

Net Profit

--

$(18)

$32

N/A

EPS

$0.31

$(0.78)

$1.40

N/A



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change

Gross Margin

41.93%

45.39%

(3.46)

Op. Margin

(1.47%)

9.32%

NA

Net Margin

(2.98%)

5.49%

NA



Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

% Change

Cash+ ST Invest.

$18

$80

(77.5)

Inventory

$515

$440

17.1

Other Cur Assts.

$35

$22

57.8



Liabilities

Q4 2006

Q4 2005

% Change

Long-Term Debt

$204

$100

103.7

Accounts Pay.

$147

$167

(12.3)



Cash Flow Highlights

Data not provided. (Wicked lame.)

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Related Companies:

  • Michaels Stores (NYSE:MIK)
  • Wal-Mart (NYSE:WMT)
  • Target (NYSE:TGT)
  • AC Moore (NASDAQ:ACMR)
  • Hancock Fabrics (NYSE:HKF)

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At the time of publication, Seth Jayson had no positions in any company mentioned here. Fool rules are here.