Jo-Ann Continues To Gain Share From Wal-Mart

Analysts at Wells Fargo Securities reiterate their "outperform" rating on Jo-Ann Stores Inc JAS, while raising their estimates for the company. According to Wells Fargo Securities, “J0-Ann Stores reported significant 2Q upside to our estimates and the Street ($0.20 vs. $0.02) as comps accelerated on both a 1- and 2 year basis, and gross margin and expenses came in better than expected. The company raised full year guidance by $0.25 (just over 8%) on top of the $0.20 raise last quarter, and now plans to open at least 50 new stores next year (vs. previous guidance of at least 40), signaling continued optimism in the business.” “We believe Jo-Ann continues to gain share from Wal-Mart, which remains on pace to exit fabric in 550 stores this year (up from 500 last year) and is also reducing square footage in some craft categories by 50%,” the analysts add. Wells Fargo Securities has raised its EPS estimate for FY10 and FY11 from $3.23 to $3.41 and from $3.70 to $3.91, respectively. More Analyst Ratings here