JOANN Inc. (JOAN) stock prices were up 3.95% as of the market closing on June 3rd, 2021, bringing the price per share up to USD$14.22 at the end of the trading day. After-hours trading saw the stock climb by another 5.13%, bringing it up to USD$14.95.
Net Sales Breakdown
The first quarter of the fiscal year 2021 saw the company report net sales of USD$574.4, up 15% from the numbers reported for the same quarter of the prior year. Total comparable sales were also up by 15% over the same time periods, whereas on a two-year stack, total comparable sales were up by 13%. Omni-channel net sales were up to USD$76 million, representing a 186% increase on a two-year stack. Omni-channel net sales accounted for 13.2% of the total first-quarter sales for the fiscal year 2022.
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Gross Margin Reports
Gross margins reported for the first quarter of the fiscal year 2022 were up to USD$302.7 million, exhibiting a 23.1% year-over-year increase. The increase was at a rate to net sale of 52.7%, an increase of 350 basis points, as compared to the same quarter of the fiscal year 2021. Gross margins were up 13.5% on a two-year stack, and 100 basis points as a percent to net sales on a two-year stack.
Net Income and EPS
Net income also exhibited a massive improvement, with the first quarter of the fiscal year 2022 reporting a net income of USD$15.1 million. The prior-year quarter had reported a cumulative net loss of USD$23.6 million. Diluted EPS came out to USD$0.38, a massive improvement over the loss of USD$0.68 per share reported in the year-ago quarter. Adjusted diluted EPS came out to USD$0.46 for Q1 2022, with Q1 2021 having reported a loss of USD$0.31.
Solid Liquidity Position
As of May 1st, 2021, the company reported having cash and cash equivalents totaling USD$22.7 million, with net long-term debt amounting to USD$760.4 million. A 12.2% year-over-year reduction of inventories to USD$539.3 million as of May 1st 2021 reflects the continued improvement of JOAN’s working capital efficiency. Q1 2022 also saw the company announce its first quarterly dividend, set at USD$0.10 per share of common stock.
Future Outlook for JOAN
Armed with a solid liquidity position and outstanding financial improvements from the year ago quarter, JOAN is poised to capitalize on the success of its strong start to the fiscal year 2022. The company is eager to usher in a continued trajectory of growth. Current and potential investors are hopeful that management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.
