Right now, the company plans to open five 35,000-square-foot units and one 25,000-square foot store in fiscal 2008, continuing its focus on superstores.
"We intend to get our concept right before expanding more rapidly," said Darrell Webb, chairman, president and CEO of the crafts chain.
During the last quarter, the company opened five superstores, while closing six smaller, traditional stores and one superstore. Jo-Ann will open one more superstore and close 14 traditional stores in the next quarter. The chain has been refining its prototype to include wider aisles and improve the customer shopping experience.
The slowdown in store growth is just one aspect of the company's turnaround strategy, which also includes a focus on better inventory and cost control, Webb said.
The result is a return to profitability despite lower sales. Net earnings for the third quarter of fiscal 2007 were $0.1 million, compared with a net loss of $4.1 million in the third quarter of 2006. Net sales for the third quarter were $461.9 million compared to $474.2 million the previous year. Same-store sales decreased 5.4% versus an increase of 0.7% for the third quarter of 2006.
Jo-Ann Stores operates 642 Jo-Ann Fabric and Craft traditional stores and 172 Jo-Ann superstores in 47 states.
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