Fabric and arts and crafts retailer Joann Inc. in Hudson ended its first full fiscal year as a publicly traded company with $2.4 billion in revenue.
The company said it has been impacted recently by the surge last year in COVID-19 cases and now by rising prices, particularly for petroleum-based products, and higher-than-expected shipping costs.
Joann said it is also donating money to the Red Cross following Russia’s invasion of Ukraine.
Joann reported fourth-quarter and full fiscal year results after the stock market closed Thursday.
The company had net income of $13.6 million, or 32 cents per share, on revenue of $735.3 million for the fourth quarter ending Jan. 29. That compares to net income of $38.3 million, or $1.06 per share, on revenue of $$840.8 million a year ago.
For fiscal 2022, Joann had net income of $56.7 million, or $1.35 per share, on revenue of $2.4 billion, up 7.9% from a year ago. The company reported a loss of $358.1 million, or $10.26 per share, a year ago.
Shares in Joann were down in trading Friday morning. The stock price dropped $1.30, or 10%, to $11.68 as of 11:52 a.m. Shares have traded from a low of $8.51 to a high of $17.50 over the past 52 weeks.
“We’ve now completed our first full year as a public company. During fiscal 2022, we achieved a number of critical milestones which we expect will underpin our continued growth longer term,” Wade Miquelon, president and chief executive officer, said in a news release. “Despite significant supply chain headwinds and disruptions, our top-line improved by 8% compared to pre-pandemic levels. Even after fully absorbing close to $60 million of higher ocean freight costs this past year, our gross profit improved by 10% over fiscal 2020.”
Ocean freight costs were projected to be two times higher in the fourth quarter compared to the third quarter, the company said, but were three times higher. The omicron variant of COVID-19 caused retail traffic to fall as well. The Russia-Ukraine war is now exacerbating inflationary pressures and creating anxiety in non-core customers, the company said.
Beacon Journal reporter Jim Mackinnon can be reached at 330-996-3544 or [email protected]. Follow him @JimMackinnonABJ on Twitter or www.facebook.com/JimMackinnonABJ.
