HUDSON, Ohio–Jo-Ann Stores posted fourth-quarter net income of $20.4 million, down 26 percent from the fourth quarter of last year.
The drop was partly due to a decline of 150 basis points in the retailer’s gross margin during the quarter, due to markdowns taken to sell seasonal merchandise. In addition, selling, general and administrative expenses increased as a percentage of net sales to 34.9 percent from 34.5 percent in last year’s fourth-quarter—even though SG&A on a dollar basis decreased by 1.2 percent.
Net sales for the quarter slipped 2.4 percent to $571.9 million. The retailer’s overall same-store sales declined 2.9 percent in the quarter.
For the full fiscal year, Jo-Ann posted $21.9 million in net income, a gain of 42 percent over the prior year’s bottom line. Net sales finished at $1.9 billion, up 1.2 percent over the previous year.
