JOAN - JOANN nosedives to all-time low after weak Q1 results

2023-06-06 14:31:54 ET

JOANN ( NASDAQ: JOAN ) tumbled on Tuesday after the retailer missed consensus expectations for revenue, comparable sales, adjusted EBITDA, and EPS with its Q1 earnings report .

Total sales and comparable sales were down 4% for the quarter amid consumer discretionary spending pressures. E-commerce sales declined at a more moderate rate of 1.0% compared to last year and accounted for 11.8% of revenue in the quarter. Adjusted EBITDA sank 81% year-over-year as sales growth did not keep up with the higher expenses for the Ohio-based company.

Looking ahead, JOANN ( JOAN ) guided for a full-year sales decline of 1% to 4% and adjusted EBITDA of $85M to $95M. The company will increase its focus on cash generation.

"We have identified the full amount of our targeted cost savings and will continue to implement these initiatives. With these strategic cost reductions identified and the proactive steps we took to strengthen our balance sheet, we are already seeing a significant increase of $89 million in our free cash flow on a year over year basis."

Shares of JOANN ( JOAN ) plunged 28.88% in afternoon trading on Tuesday and carved out a new all-time low of $1.12 .

More on JOANN:

• JOANN: Still A Sell Following Q1 Earnings
• JOANN earnings call transcript
• Growth metrics on JOANN
• Seeking Alpha's Quant Rating for JOANN

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