JOANN Inc.

OTCPK:JOAN.Q Stock Report

Market Cap: US$3.2m

This company is no longer active

The company may no longer be operating, as it may be out of business. Find out why through their latest events.

JOANN Management

Management criteria checks 2/4

We currently do not have sufficient information about the CEO.

Key information

Chief executive officer

n/a

Total compensation

CEO salary percentagen/a
CEO tenureno data
CEO ownershipn/a
Management average tenure2.5yrs
Board average tenure3.2yrs

Recent management updates

Recent updates

Seeking Alpha • Oct 12

JOANN: Digitalization Is Finally Paying Off

Summary After 75 years in business, Joann bills itself as the nation’s best seller of sewing and fabrics. I believe that management successfully changed the business from a traditional retailer into a digital shop. Let’s keep in mind that Joann owns a massive database with many customers, and offers very different purchasing channels. With correct marketing efforts, Joann will likely see sales growth. JOANN Inc. (JOAN) appears to be receiving a lot of attention after making significant efforts to transform itself into a digital shop. Analysts are expecting an increase in free cash flow. Under my own assumptions that include correct assessment of the database and more suppliers from Asia, I think the fair price is significantly higher than the stock price. I see risks from tariffs to Asian products in the United States and lack of innovation. However, from here, the downside risk in the stock price does seem very limited. JOANN: From A Traditional Retailer Into A Digital Shop After 75 years in business, JOANN bills itself as the nation’s best seller of sewing and fabrics. The recent increase in customers is the first thing that seems worth mentioning. Since February 1, 2020, the company got close to 10 million new customers. Source: Company’s Website In my view, after the transformation of the company that started in 2016, the numbers are getting better and better. I believe that management successfully changed the business from a traditional retailer into a digital shop. The acceleration of the free cash flow that many analysts out there are expecting is a great reason to review the new business model. Balance Sheet As of July 30, 2022, a total of cash and cash equivalents of $21.5 million was reported, with inventories of $749.9 million, other current assets of $78.5 million, and total current assets of $849.9 million. The property, equipment and leasehold improvements were worth $285.5 million in addition to goodwill worth $162 million and intangible assets of $371.5 million. Total assets stand at $2.53 billion. I believe that the company’s numbers in 2022 are a bit better than that in 2021. Source: 10-Q With regards to the list of liabilities, JOANN reported a total of accounts payable of $272.3 million, accrued expenses of $140.4 million, and current portion of operating lease liabilities of $159 million. The current portion of long term debt was equal to only $6.8 million in addition to total current liabilities of $587.5 million. With long term debt worth $1.012 billion and long term operating lease liability of $771.3 million, I believe that the company’s contractual obligations don’t seem that significant. Keep in mind that market estimates include 2025 FCF close to $306 million. Source: 10-Q Free Cash Flow Is Expected To Trend North In The Next Three Years Investment analysts expect that JOANN will, by 2025, likely report a total net sales of $2.3 billion as compared to $2.2 billion in 2023. Besides, EBITDA is expected to increase from $135 million in 2023 to $243 million in 2025. The EBITDA margin is also expected to stand at around 6.05%-7.33%. Source: seekingalpha.com/symbol/JOAN/earnings/estimates In 2025, in addition to an operating profit of $91 million and an operating margin of 6%, the net income is expected to be $23.4 million. Finally, the free cash flow will likely stand at around $306 million with FCF/sales of 13.27%. In sum, in my view, the investment community expects to see better numbers in the coming years. With Correct Assessment Of The Company’s Database And Correct Purchase Of Inventory From Asia, I Obtained A Fair Price Of $10.27 Per Share Under normal conditions, I expect a lot from the company’s digital interactions through online communities and social media platforms. Let’s keep in mind that JOANN owns a massive database with many customers, and offers very different purchasing channels. With correct marketing efforts, JOANN will likely see sales growth: As of the end of fiscal 2022, we had approximately 77 million addressable customers in our vast database. Customers have the ability to shop their local store location online, with convenient omni-channel services available like BOPIS or curbside pickup. Customers can also choose to order direct to home, with extended aisle offerings across all major product categories. For customers seeking to purchase in greater quantities, we offer low pricing for bulk purchases through our JOANN+ service on joann.com. Source: 10-k I also believe that the company’s EBITDA margins will remain solid because JOANN buys cheap supply materials in cheap jurisdictions. In my view, if management buys even more from sources in Pakistan, India, Vietnam, Taiwan, Turkey, China, and South Korea, we could see an increase in the EBITDA margin. The fact that the company recently opened a foreign sourcing office in Shanghai indicates that management is willing to go abroad: During fiscal 2022, we sourced approximately 64% of our purchases from domestic suppliers with the remaining approximately 36% of our products coming directly from manufacturers located in foreign countries, of which over one-third is sourced from China. To further support our direct sourcing strategic initiative, we opened our foreign sourcing office in Shanghai, China in 2018. We continue to diversify our internationally sourced products by expanding in several other countries, including Pakistan, India, Vietnam, Taiwan, Turkey and South Korea. Source: 10-k I am also quite optimistic about the company’s logistics and quality control. Let’s keep in mind that JOANN owns distribution centers. A significant portion of its products is stored in-house. It means that management can really detect issues in supply chain or a decrease in quality: As of January 29, 2022, approximately 89% of the products in our store locations were shipped through our distribution center network, with the remaining 11% of our purchases shipped directly from our suppliers to our store locations. Source: 10-k
Seeking Alpha • Sep 01

Joann names new CFO

Joann (NASDAQ:JOAN) announced Thursday the appointment of Scott Sekella as its senior vice president and chief financial officer, effective Sept. 26, 2022.  Most recently, Sekella served as vice president, Corporate FP&A at Under Armour and prior to which Sekella held roles at Crocs, Inc., where he ultimately served as VP and Global Controller. Previously, he held roles overseeing several aspects of Finance at Henkel of America, Pfizer and Ford Motor Company. On Wednesday: JOANN drops after Bank of America downgrades due to slowing demand trends
Analysis Article • Aug 23

JOANN's (NASDAQ:JOAN) Dividend Will Be $0.11

JOANN Inc.'s ( NASDAQ:JOAN ) investors are due to receive a payment of $0.11 per share on 23rd of September. Based on...
Seeking Alpha • Aug 19

JOANN declares $0.11 dividend

JOANN (NASDAQ:JOAN) declares $0.11/share quarterly dividend, in line with previous. Forward yield 4.25% Payable Sept. 23; for shareholders of record Sept. 9; ex-div Sept. 8. See JOAN Dividend Scorecard, Yield Chart, & Dividend Growth.
Analysis Article • Jul 04

Here's What's Concerning About JOANN's (NASDAQ:JOAN) Returns On Capital

What underlying fundamental trends can indicate that a company might be in decline? A business that's potentially in...
Seeking Alpha • Jun 27

JOANN: Poor Fundamentals Keep Us Bearish

Joann reported its Q1 results with a widening loss and weak sales. While the company expects supply chain challenges to improve going forward, we don't see much room for a turnaround. We expect poor fundamentals including a large debt to keep risks tilted to the downside.
Analysis Article • Jun 08

Results: JOANN Inc. Delivered A Surprise Loss And Now Analysts Have New Forecasts

Last week, you might have seen that JOANN Inc. ( NASDAQ:JOAN ) released its first-quarter result to the market. The...
Analysis Article • May 24

JOANN (NASDAQ:JOAN) Has Re-Affirmed Its Dividend Of US$0.11

JOANN Inc. ( NASDAQ:JOAN ) has announced that it will pay a dividend of US$0.11 per share on the 24th of June. This...

CEO

JOANN has no CEO, or we have no data on them.

Leadership Team

NamePositionTenureCompensationOwnership
Scott Sekella
Executive VP & CFO1.7yrsUS$854.19k0.19%
$ 5.9k
Christopher DiTullio
Executive VP & Chief Customer Officer4.6yrsUS$1.23m0.17%
$ 5.5k
Robert Will
Executive VP & Chief Merchandising Officer4.6yrsUS$1.22m0.063%
$ 2.0k
John Stalcup
Senior VP & Chief Information Officerless than a yearno data0.22%
$ 7.1k
Ajay Jain
Investor Relations Directorno datano datano data
Ann Aber
Senior VP5.1yrsno data0.15%
$ 4.7k
Lisa Wittman-Smith
Senior Vice President of Inventory Management & Business Insights2.5yrsno data0.13%
$ 4.0k
Joseph Thibault
Senior Vice President of Store Operations2.5yrsno data0.11%
$ 3.5k
Mario Sampson
Senior Vice President of Supply Chain1.9yrsno data0.11%
$ 3.5k
Dennis Sheldon
Senior Vice President of Supply Chainless than a yearno datano data
2.5yrs
Average Tenure
48yo
Average Age

Experienced Management: JOAN.Q's management team is considered experienced (2.5 years average tenure).

Board Members

NamePositionTenureCompensationOwnership
Darrell Webb
Independent Chairman17.8yrsUS$215.00k0.66%
$ 20.9k
Lily Chang
Director6yrsUS$212.50k0.42%
$ 13.3k
Pamela Corrie
Independent Directorless than a yearno datano data
Marybeth Hays
Independent Director3.2yrsUS$207.50k0.47%
$ 15.0k
Brian Coleman
Director1.9yrsUS$168.75k0.40%
$ 12.7k
Anne Mehlman
Independent Director3.2yrsUS$220.00k0.42%
$ 13.3k
3.2yrs
Average Tenure
56yo
Average Age

Experienced Board: JOAN.Q's board of directors are considered experienced (3.2 years average tenure).

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/05/01 00:34
End of Day Share Price 2024/05/01 00:00
Earnings2023/10/28
Annual Earnings2023/01/28

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

JOANN Inc. is covered by 7 analysts. 0 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Elizabeth SuzukiBofA Global Research
Steven ForbesGuggenheim Securities, LLC
Laura ChampineLoop Capital Markets