Joann Inc. JOAN shares are trading lower in Monday's after-hours session after the company reported third-quarter earnings. Here's what's moving the stock.
What To Know: Joann reported quarterly losses of 21 cents per share, in-line with analyst expectations, a 450% decrease over earnings of six cents per share from the same period last year.
The company reported quarterly sales of $539.80 million, falling below the analyst consensus estimate of $547.20 million, marking a 4.09% decrease over sales of $562.80 million the same period last year.
Among the revenue metrics, e-commerce sales grew at a rate of 11.5% year-over-year, comprising 13.1% of total company net sales.
Additionally, cash used for operations rose $61.1 million and free cash flow fell $38.1 million, compared to the same period last year.
Joann also said that, under its Focus, Simplify and Grow initiative, it could now deliver $225 million in targeted annual cost reductions.
The company issued its full-year 2024 Net Sales guidance as well, estimating a decrease of 1% to 2%, inclusive of a 53rd week worth approximately 2%.
Scott Sekella, Joann's CFO and co-lead of the Interim Office of the CEO, said, "During the quarter, we continued to execute against our Focus, Simplify and Grow cost reduction initiative in which we had previously identified $200 million of targeted annual cost savings across supply chain, product, and SG&A expenses."
"As we implement these cost savings initiatives, we are driving meaningful cash flow improvements that we expect will continue for the remainder of this fiscal year and beyond. With the success we have had with this initiative, we are pleased to have increased this target to $225 million, with the majority of the over-delivery in SG&A and Supply Chain expenses."
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JOAN Price Action: Shares of JOAN were down 13.48% at $0.89 in the after-hours session at the time of publication, according to Benzinga Pro.
Photo: Cornell Frühauf from Pixabay
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