Joann Inc. JOAN, +7.11% shares shed gains from the regular session after hours Thursday after the fabric, arts and crafts retailer missed big on earnings while beating Wall Street estimates on revenue, as it seeks to cut costs. Joann shares fell 5% after hours, following a 7.1% surge in the regular session to close at $2.11. The company reported a fourth-quarter loss of $91.1 million, or $2.23 a share, versus net income of $13.6 million, or 32 cents a share, in the year-ago period. Adjusted earnings, which excludes stock-based compensation expenses and other items, were 7 cents a share, compared with $1.16 a share in the year-ago period. Revenue declined to $692.8 million from $735.3 million in the year-ago period. Meanwhile, analysts surveyed by FactSet had forecast earnings of 62 cents a share on revenue of $668.8 million. The company said it’s looking to reduce annual costs by roughly $200 million. “While many of the cost headwinds we faced in fiscal year 2023 are becoming tailwinds, we believe it is prudent to continue to take proactive steps to strengthen our balance sheet,” said Scott Sekella, Joann’s chief financial officer, in a statement. “With this in mind, our new credit facility is another tool to improve our balance sheet as we focus on cash generation throughout fiscal year 2024.” The CFO was referring to a credit facility that adds a series of $100 million first-in last-out loans, adding to its existing $500 million asset-based revolving credit loan.
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