Same-store sales increased 1.8% over the previous year, despite a total decline of 0.1% to $424.2 million, proof of progress in a turnaround strategy, said Darrell Webb, chairman, president, and chief executive officer. But the company also is cutting back on the expenditures per square foot of its remodeling program, which will include 20 traditional stores and four superstores this year.

"We spent $15 per square foot on [previous] remodels," Webb said. "The remodels we've planned for this year have been scaled back to about $10 per square foot and focused on the larger stores, where we see a greater [return]."

During the first quarter of fiscal 2008, Jo-Ann opened two superstores and one traditional store, while closing 10 traditional stores. For the balance of the year, the company expects to open three superstores (two of about 35,000 square feet and one 25,000-square-foot unit), while closing 13 traditional stores and one superstore.