Investors in JOANN (NASDAQ:JOAN) from a year ago are still down 88%, even after 12% gain this past week

This month, we saw the JOANN Inc. (NASDAQ:JOAN) up an impressive 42%. But that is meagre solace when you consider how the price has plummeted over the last year. Specifically, the stock price nose-dived 89% in that time. It's not uncommon to see a bounce after a drop like that. The bigger issue is whether the company can sustain the momentum in the long term. We really feel for shareholders in this scenario. It's a good reminder of the importance of diversification, and it's worth keeping in mind there's more to life than money, anyway.

While the last year has been tough for JOANN shareholders, this past week has shown signs of promise. So let's look at the longer term fundamentals and see if they've been the driver of the negative returns.

Check out our latest analysis for JOANN

Because JOANN made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

JOANN's revenue didn't grow at all in the last year. In fact, it fell 6.2%. That's not what investors generally want to see. The market obviously agrees, since the share price tanked 89%. That's a stern reminder that profitless companies need to grow the top line, at the very least. Of course, extreme share price falls can be an opportunity for those who are willing to really dig deeper to understand a high risk company like this.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

This free interactive report on JOANN's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

While JOANN shareholders are down 88% for the year, the market itself is up 8.6%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. The share price decline has continued throughout the most recent three months, down 34%, suggesting an absence of enthusiasm from investors. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. It's always interesting to track share price performance over the longer term. But to understand JOANN better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for JOANN you should be aware of, and 1 of them doesn't sit too well with us.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.