Joann's Supply Chain Pressures Persist, Says This Analyst

Telsey Advisory Group analyst Christina Fernandez maintained a Market Perform rating on the shares of Joann Inc JOAN with a price target of $8.00.
Joann's Q2 adjusted EPS loss missed Street estimates with a 6.2% decline in comparable store sales.
The analyst said the company saw sequential improvement in its comparable sales as the quarter progressed.
However, Fernandez felt the supply chain costs remain elevated and are expected to weigh on the gross margin for at least another quarter.
The analyst believes for the stock to regain momentum, she needs to see a return to positive comparable store sales, easing of supply chain costs, and further debt reduction.
The analyst also noted Joann's appointment of Scott Sekella as its new CFO, effective September 26.
Price Action: JOAN shares are trading lower by 1.82% at $7.01 on the last check Friday.