JOANN shares were extending losses in pre-market trading after the sewing and arts and crafts company reported lower sales and profit.
Shares fell 3.84% to close at $12.76 per share Thursday and are continuing declines in the pre-market.
Net sales decreased 29.8% to $496.9m in the fiscal 2022 second quarter ended 31 July. Comparable sales plunged 29.9%, athough the company noted comparable sales increased 8.1% on a two-year stack.
Omni-channel net sales reached $53.5m, representing 11% of second quarter sales.
Net income was $5.2m compared to $149.9m in the previous year quarter. Two years ago, JOANN reported a $167.8m net loss in the comparable period.
Adjusted EBITDA was $23.5m, down from $93.1m year-on-year.
At 31 July, JOANN had cash and cash equivalents of $22.1m. Net long-term debt stood at $771.2m, resulting in leverage of 2.7x.
First results following March IPO
The results are JOANN’s first full quarter as a public company in a decade. Private equity firm Leonard Green acquired the then Jo-Ann Stores in 2011 for $1.6bn.
The Hudson, Ohio-based retailer began trading on 12 March after setting a price of $12 per share. The retailer raised $131m through its IPO.
“We achieved a number of important milestones in our first full quarter as a newly public company,” CEO Wade Miquelon said. “We continued to accelerate growth in gross profit dollars and net earnings on a two-year basis in what is historically our lowest volume period of our fiscal year.”
Miquelon added that JOANN is on track to deliver fashion and seasonal products for the key fall and holiday seasons, despite “numerous supply chain challenges”.