Joann Inc drops as Q3 results miss, quarterly dividend paused

Joann

13/12/2022 14:05

** Shares of arts and crafts retailer Joann Inc  JOAN.O 
down ~6% at $4.12 before the bell 
    ** JOAN after hours on Monday missed Street estimates for Q3
results and paused its qtrly dividend to boost balance sheet
    ** Co also says targeting $200 mln in cost savings from
lower supply chain and product expenses over the next 18 months 
    ** Telsey Advisory Group trims PT on JOAN to $5 from $6
    ** "Joann's consumer remains under pressure and is likely to
be cautious about spending on arts & crafts until inflation
moderates or the economy improves" - Telsey analyst Cristina
Fernández 
    ** Wells Fargo says while JOAN is targeting $200 mln of
annual cost reductions, the brokerage remains sidelined due to
low demand visibility, discretionary headwinds, and higher
promotions
    ** JOAN has a consensus rating of "hold" among seven
brokerages covering the stock, with a median PT of $5 -
Refinitiv data
    ** Up to last close, stock had fallen ~58% YTD 
 (Reporting by Deborah Sophia in Bengaluru)
 ((DeborahMary.Sophia@thomsonreuters.com))