Core Insights - JOANN is launching a new brand campaign titled "JO-AND," aimed at inspiring creativity and connection among customers, particularly targeting younger demographics [5] - The company emphasizes the joy of the creative process and aims to raise awareness of its extensive product offerings, which include over 100,000 SKUs across various categories [6][4] - JOANN has marked down more than 15,000 items to make creativity more accessible to customers [6] Company Overview - JOANN has been in business for over 80 years, operating more than 800 stores across 49 states and employing 18,000 team members [3][4] - The company is recognized as a leader in sewing and fabrics, with a significant presence in the arts and crafts market [4] Community Engagement - JOANN encourages customers to create for themselves and others, promoting a culture of giving through various charitable initiatives [7] - The company has partnered with organizations like Children's Miracle Network and St. Jude Children's Research Hospital, raising over $3.6 million since 2021 for mental health resources for youth [7]

Core Insights - JOANN, a leader in sewing and fabrics, is reducing prices on thousands of items to inspire creativity among customers [1][3] - The company is hosting a semi-annual sale from June 13-26, offering discounts of up to 70% on over 18,000 items [1][2] Pricing Strategy - JOANN is implementing everyday price cuts across various categories, including fabric, yarn, crafts, and home décor [1][3] - Specific price points include yarn and sewing supplies starting as low as $1.49, and significant discounts on frames, storage, and art supplies [2] Product Assortment - JOANN offers a wide range of products, including over 6,000 fabric styles, 1,700 craft and fine art supplies, and 1,000 jewelry making supplies [2] - The company operates more than 800 stores and provides access to over 100,000 items online [2] Company Background - JOANN has been in operation for 80 years, evolving from a single storefront in Cleveland, Ohio, to 830 stores across 49 states [2] - The company aims to be a convenient source for all creative supplies, guidance, and inspiration [2]

Company Leadership Changes - JOANN has appointed Michael Prendergast as Acting Chief Executive Officer, who has extensive experience in transforming companies and has served as an interim leader for other retailers [1] - Chris DiTullio and Scott Sekella will continue their roles as Chief Customer Officer and Chief Financial Officer, respectively, after leading JOANN through a successful Chapter 11 process [1] - A search for a permanent CEO is currently underway [1] Board of Directors - The new Board of Directors includes experienced members such as Mary Campbell, Joe Hartsig, Darrell Horn, Michelle Israel, and Bill Wall, who bring deep expertise in business and retail [13] - Darrell Horn, the Interim Chairman of the Board, expressed confidence in Michael Prendergast's ability to maintain the company's positive momentum [2] Company Background - JOANN has been a leader in the fabric and sewing category for over 80 years, operating more than 800 store locations across 49 states and a robust e-commerce platform [12] - The company aims to inspire creativity and serve as a single source for supplies, guidance, and inspiration for its customers [12]

Financial Performance - Net sales decreased by 4.1% to $539.8 million compared to the third quarter of fiscal 2023, with total comparable sales also decreasing by 4.1%[74] - The net loss for the third quarter of fiscal 2024 was $21.6 million, compared to a net loss of $17.5 million in the same period last year[74] - Adjusted EBITDA for the thirteen weeks ended October 28, 2023, was $37.5 million, representing 6.9% of net sales[82] - Total comparable sales decreased by 4.1% compared to the prior year, while the prior year's comparable sales decrease was 8.0%[82] - The operating loss for the third quarter was $15.4 million, which is 2.9% of net sales[82] - The company experienced a decrease in net sales for the thirty-nine weeks ended October 28, 2023, totaling $1,471.7 million, down from $1,524.1 million in the prior year[82] - Net sales for the thirteen weeks ended October 28, 2023, were $539.8 million, a decrease of $23.0 million or 4.1% compared to the same period in fiscal 2023[84] - Net sales for the thirty-nine weeks ended October 28, 2023, were $1,471.7 million, a decline of $52.4 million or 3.4% compared to the same period in fiscal 2023[94] Profitability Metrics - Gross profit increased by 0.4% to $282.1 million, resulting in a gross margin of 52.3%, which is a 240 basis point increase from the prior year[74] - Gross profit was $282.1 million for the thirteen weeks ended October 28, 2023, an increase of $1.1 million or 0.4%, with a gross margin of 52.3%, up 240 basis points from the prior year[85] - The gross margin for the thirty-nine weeks ended October 28, 2023, was 51.9%, an increase from 48.3% in the previous year[82] - Gross profit for the thirty-nine weeks ended October 28, 2023, was $763.1 million, an increase of $26.5 million or 3.6%, with a gross margin of 51.9%, up 360 basis points[95] Expenses - SG&A expenses increased to $273.4 million, representing 50.6% of net sales for the quarter[82] - SG&A expenses were $273.4 million for the thirteen weeks ended October 28, 2023, an increase of $4.4 million or 1.6%, representing 50.6% of net sales, an increase of 280 basis points[88] - Interest expense for the thirteen weeks ended October 28, 2023, was $28.4 million, an increase of $10.3 million, with an average debt level of $1,144.6 million[89] Cash Flow and Liquidity - Net cash used for operating activities for the thirty-nine weeks ended October 28, 2023, was $(150.9) million, an improvement from $(173.6) million in the prior year[106] - Net cash used for operating activities decreased to $150.9 million for the thirty-nine weeks ended October 28, 2023, from $173.6 million in the same period of 2022, primarily due to declining carrier and fuel rates[107] - Net cash provided by financing activities was $163.5 million for the thirty-nine weeks ended October 28, 2023, compared to $263.4 million in the same period of fiscal 2023[110] - The company has the ability to borrow an additional $72.1 million under its ABL Facility as of October 28, 2023[111] - Liquidity is not currently dependent on off-balance sheet transactions, other than typical letters of credit[113] Capital Expenditures - Total capital expenditures for the thirty-nine weeks ended October 28, 2023, were $36.1 million, down from $80.4 million in the prior year, with significant reductions in spending on store locations and information technology[109] - The company incurred capital outlays for equipment and facility investments in distribution centers, store locations, and corporate offices[108] Market and Operational Insights - The total store location count at the end of the period was 829, down from 840 in the previous year[82] - The business exhibits seasonality, with net sales typically stronger in the second half of the year, particularly from September to December[114] - The fair value of the JOANN reporting unit exceeded its carrying value by approximately $103.0 million, or 10.1%, based on the last quantitative assessment[116] - No material changes in market risk exposure were reported during the thirty-nine weeks ended October 28, 2023[118]

Financial Performance - Net sales for the thirteen weeks ended July 29, 2023, were $453.8 million, a decrease of 2.1% compared to the same period in fiscal 2023[84]. - Total comparable sales decreased by 2.0% for the same period, an improvement from a 6.2% decline in the prior fiscal year[84]. - Gross profit increased by 8.0% to $232.0 million, with a gross margin of 51.1%, reflecting a 470 basis point increase year-over-year[85]. - The net loss for the second quarter of fiscal 2024 was $73.3 million, compared to a net loss of $56.9 million in the same period last year[74]. - Adjusted EBITDA for the thirteen weeks ended July 29, 2023, was $(21.9) million, compared to $(8.9) million in the same period last year[83]. - Net sales for the twenty-six weeks ended July 29, 2023, were $931.9 million, a decline of $29.4 million or 3.1% compared to the same period in fiscal 2023[94]. - Gross profit for the twenty-six weeks ended July 29, 2023, was $481.0 million, an increase of $25.4 million or 5.6% compared to the same period in fiscal 2023, with a gross margin of 51.6%[95]. - Net loss for the twenty-six weeks ended July 29, 2023, was $127.5 million, an increase of $35.5 million compared to the same period in fiscal 2023[101]. - Adjusted EBITDA for the twenty-six weeks ended July 29, 2023, decreased 289.7% to ($18.4) million, or 2.0% of net sales, compared to $9.7 million, or 1.0% of net sales for the same period in fiscal 2023[102]. Expenses and Costs - SG&A expenses as a percentage of net sales increased to 59.5% from 55.8% in the prior year[83]. - SG&A expenses for the thirteen weeks ended July 29, 2023, were $269.9 million, an increase of $11.4 million or 4.4% compared to the same period in fiscal 2023, representing 59.5% of net sales, an increase of 370 basis points[88][1]. - SG&A expenses for the twenty-six weeks ended July 29, 2023, were $532.8 million, an increase of $15.2 million or 2.9% compared to the same period in fiscal 2023, representing 57.2% of net sales, an increase of 340 basis points[97][1]. - Interest expense for the thirteen weeks ended July 29, 2023, was $26.8 million, an increase of $13.6 million compared to the same period in fiscal 2023, with an average debt level of $1,079.0 million and a weighted average interest rate of 9.82%[89][1]. - Interest expense for the twenty-six weeks ended July 29, 2023, was $52.1 million, an increase of $27.7 million compared to the same period in fiscal 2023, with an average debt level of $1,068.8 million and a weighted average interest rate of 9.28%[98][1]. Sales Trends - The decline in net sales was primarily driven by decreases in average ticket size, particularly in craft technology and non-Halloween seasonal categories[84]. - Positive results were noted in needle arts and Halloween seasonal business due to earlier merchandise availability[84]. - The company's net sales are stronger in the second half of the year, with net income peaking from September to December, aligning with the peak selling season[115]. Asset and Market Risk - A quantitative impairment analysis indicated that the fair value of the reporting unit exceeded the carrying value by approximately $103.0 million, or 10.1%[118]. - Management noted that no specific negative events occurred during the interim period that would trigger goodwill or intangible asset impairment testing[117]. - An increase in the assumed discount rate by approximately 120 basis points or a decrease in gross margin by approximately 50 basis points could necessitate impairment charges[118]. - There have been no material changes in the company's exposure to market risk during the twenty-six weeks ended July 29, 2023[119].

Financial Performance - Net sales for the thirteen weeks ended April 29, 2023, were $478.1 million, a decrease of 4.0% compared to the same period in fiscal 2023 [83]. - Total comparable sales decreased by 4.0%, compared to a 12.9% decrease in the same period of the prior fiscal year [83]. - Gross profit increased by 3.4% to $249.0 million, with a gross margin of 52.1%, reflecting a 380 basis point increase year-over-year [84]. - SG&A expenses rose by 1.5% to $262.9 million, representing 55.0% of net sales, an increase of 300 basis points compared to the prior year [85][86]. - Adjusted EBITDA was $3.5 million, down from $18.6 million in the same period last year, representing 0.7% of net sales [82][81]. - Net loss for the thirteen weeks ended April 29, 2023, was $54.2 million, compared to a net loss of $35.1 million in the same period of fiscal 2023 [90]. - Adjusted EBITDA for the same period was $3.5 million, a decrease from $18.6 million in fiscal 2023 [91]. Debt and Interest - Interest expense for the period was $25.3 million, an increase of $14.1 million due to higher interest rates and increased average debt levels [87]. - The average debt level was $1,058.6 million, compared to $892.9 million in the same period last year, with a weighted average interest rate of 8.74% [87][88]. - The ratio of consolidated net debt to Credit Facility Adjusted EBITDA was 4.8 to 1.0, indicating compliance with debt covenants [93]. Cash Flow and Capital Expenditures - Net cash used for operating activities was $33.8 million in Q1 fiscal 2024, significantly improved from $122.2 million in Q1 fiscal 2023 [96]. - Total capital expenditures for the thirteen weeks ended April 29, 2023, were $18.5 million, slightly down from $19.3 million in the same period of fiscal 2023 [98]. - Net cash provided by financing activities was $53.3 million in Q1 fiscal 2024, compared to $145.6 million in the same period of fiscal 2023 [99]. - The company anticipates capital requirements will peak during the second and third fiscal quarters due to inventory buildup for the peak selling season [94]. - The company has the ability to borrow an additional $61.3 million under the ABL Facility as of April 29, 2023 [100]. Operational Metrics - The total store location count at the end of the period was 831, down from 846 in the previous year [82]. - The decline in comparable sales was primarily driven by decreased transaction volume, particularly in craft technology and seasonal businesses [83]. - The company has started to see a decline in overall ocean freight rates, positively impacting cash payments [74]. Taxation - The effective income tax rate for Q1 fiscal 2024 was 13.1%, down from 30.8% in Q1 fiscal 2023, due to the need for a valuation allowance against deferred tax assets [89]. Impairment and Future Assessments - No impairment charges were recognized for goodwill or intangible assets during the quarter, but future assessments may be necessary due to macroeconomic uncertainties [105].

Sales and Customer Insights - Sewing category represented 46% of total net sales in fiscal 2023[30] - Approximately 44% of net sales were generated by returning customers who shopped in the preceding 52 weeks[27] - E-commerce generated net sales of approximately $511 million, $299 million, and $271 million in fiscal years 2021, 2022, and 2023, respectively[26] - The company has approximately 81 million addressable customers in its database and around 20 million customers in its email database[26] - JOANN's net sales are stronger in the second half of the year, with net income peaking from September to December due to significant operating leverage[67] Store and Operational Details - The company operated 833 store locations across 49 states as of January 28, 2023, with an average size of approximately 22,500 square feet[29] - JOANN operated 833 store locations across the United States, with a total square footage of approximately 18,720 thousand[47] - Approximately 20,000 full- and part-time team members were employed as of January 28, 2023, with about 18,100 working in store locations[57] - JOANN's distribution centers shipped 91% of products to store locations, with the Hudson distribution center supplying 35% of outbound volume[40] Supply Chain and Sourcing - JOANN sourced 56% of its purchases from domestic suppliers and 44% from international sources, with over one-third of international products coming from China[38] - JOANN's top supplier accounted for 5% of total annual purchase volume, while the top 10 suppliers represented 22%[39] - 44% of the company's purchases in fiscal 2023 were sourced internationally, primarily from China and other Asian countries[278] Financial Performance and Debt - The company had $990.6 million of outstanding debt as of January 28, 2023[24] - The company employs established policies to manage exposure to interest rate changes and utilizes derivative financial instruments for risk mitigation[279] - Interest rate changes impact the company's outstanding borrowings under its First Lien Facility and ABL Facility[277] - A hypothetical 1% change in interest rates would not have had a material impact on the company's consolidated financial statements[279] Marketing and Customer Engagement - The company’s marketing efforts focus on deepening customer relationships and creating loyalty through personalized communications[32] - The company’s digital marketing strategies include online display, search marketing, social media, and affiliate marketing programs[33] - JOANN's social media presence includes over 3.6 million followers, with an organic reach of more than 82 million views on Instagram and Facebook during fiscal 2023[36] Corporate Social Responsibility - In fiscal 2023, JOANN team members and customers donated over $6 million to charitable organizations, representing an 83% year-over-year increase[36] - JOANN was recognized by Newsweek as one of America's Greatest Workplaces for Diversity and for Women[60] - The company aims to achieve zero serious injuries through ongoing investment in safety programs and injury-reduction initiatives[61] - The company maintains a commitment to diversity and inclusion through an internal council and educational programs[60] Leadership and Management - JOANN's executive team includes Wade Miquelon as President and CEO, with a diverse background in finance and retail management[69][70] - JOANN's supply chain and logistics are overseen by Mario Sampson, who has extensive experience in retail operations[75] - The company emphasizes training and development, providing tools and resources for professional growth across all team members[64] - JOANN's operational activities are coordinated by Joseph Thibault, who has been with the company since 2002 and has held multiple key roles[76] Risk Management and Financial Instruments - The company has hedging arrangements in place with two interest rate swap agreements, hedging $200 million and $250 million of principal under its First Lien Facility[279] - The company believes foreign currency exchange rate fluctuations do not pose significant market risk due to all merchandise contracts being denominated in U.S. dollars[278] - A weakening of the U.S. dollar could lead to significantly higher product costs due to increased foreign sourcing[278] - Transactions conducted in foreign currencies are not expected to materially affect the company's results of operations, financial position, or cash flows[278] - The company is indirectly exposed to foreign currency fluctuations on merchandise sourced internationally[277] - The company does not expect a direct correlation between merchandise prices and fluctuations in the exchange rate[278]

Financial Performance - Net sales decreased by 7.9% to $562.8 million compared to the third quarter of fiscal 2022, with total comparable sales down 8.0%[80] - Gross profit fell by 11.9% to $281.0 million, representing a gross margin of 49.9%, a decrease of 230 basis points year-over-year[80] - The company reported a net loss of $17.5 million for the third quarter of fiscal 2023, compared to a net income of $22.8 million in the same period last year[80] - Adjusted EBITDA for the third quarter was $40.2 million, down from $72.6 million in the prior year[85] - SG&A expenses increased to $269.0 million from $257.6 million year-over-year[88] - Net loss was $17.5 million for the thirteen weeks ended October 29, 2022, compared to net income of $22.8 million during the same period in fiscal 2022[99] - Adjusted EBITDA was $40.2 million for the thirteen weeks ended October 29, 2022, compared to $72.6 million for the same period in fiscal 2022[100] - For the thirty-nine weeks ended October 29, 2022, net sales were $1,524.1 million, a decrease of $158.2 million or 9.4% compared to the same period in fiscal 2022[101] - Gross profit for the thirty-nine weeks ended October 29, 2022, was $736.6 million, a decrease of $151.7 million or 17.1%, with a gross margin of 48.3%[102] - SG&A expenses for the thirty-nine weeks ended October 29, 2022, were $786.6 million, an increase of $32.1 million or 4.3%, representing 51.6% of net sales[103][104] - Net loss for the thirty-nine weeks ended October 29, 2022, was $109.5 million, compared to net income of $43.1 million during the same period in fiscal 2022[111] - Adjusted EBITDA for the thirty-nine weeks ended October 29, 2022, was $49.9 million, compared to $153.6 million for the same period in fiscal 2022[112] Cash Flow and Capital Expenditures - Net cash used for operating activities was $173.6 million for the thirty-nine weeks ended October 29, 2022, compared to $123.6 million for the same period in 2021, reflecting a decline in comparable sales and increased import freight costs[118] - Total capital expenditures for the thirty-nine weeks ended October 29, 2022, were $80.4 million, up from $42.9 million in 2021, driven by new store openings and refresh projects[121] - Cash used for investing activities included $4.3 million for the acquisition of WeaveUp during the first thirty-nine weeks of fiscal 2023[122] - Net cash provided by financing activities was $263.4 million for the thirty-nine weeks ended October 29, 2022, compared to $122.1 million in 2021, primarily due to net borrowings from the Second Amended Revolving Credit Facility[123] - The company had the ability to borrow an additional $74.5 million under the Second Amended Revolving Credit Facility as of October 29, 2022[123] Business Strategy and Market Position - The company declared and paid a quarterly cash dividend of $4.5 million[80] - Total comparable sales include e-commerce sales from joann.com and creativebug.com, reflecting the company's integrated digital strategy[79] - JOANN has been transforming from a traditional retailer to a digitally-connected provider of Creative Products since 2016[77] - The company expects to invest between $150,000 and $3 million per store for refresh projects, targeting over 80% of existing locations over the next seven to ten years[120] - The increase in capital expenditures for store locations was primarily driven by an increase in new store location and refresh projects in fiscal 2023 compared to fiscal 2022[121] Market Conditions and Seasonality - The company has seen a decline in overall ocean freight rates, which is expected to positively impact cash payments starting in the fourth quarter of fiscal 2023[82] - The business exhibits seasonality, with stronger net sales and net income during the second half of the year, particularly from September to December[126] - The company’s liquidity is not dependent on off-balance sheet transactions other than typical letters of credit in a retail environment[125] Fiscal Year Definition - The fiscal year ends on the Saturday closest to January 31, with fiscal 2023 referring to the year ending January 28, 2023[76]

Financial Performance - Net sales decreased by 6.8% to $463.3 million compared to the second quarter of fiscal 2022, with total comparable sales down 6.2%[79] - Gross profit fell by 19.5% to $214.9 million, representing a gross margin of 46.4%, a decrease of 730 basis points year-over-year[79] - The company reported a net loss of $56.9 million for the second quarter of fiscal 2023, compared to a net income of $5.2 million in the same period last year[79] - Adjusted EBITDA for the thirteen weeks ended July 30, 2022, was $(8.9) million, a significant decline from $23.5 million in the same period of the previous year[85] - Net loss for the thirteen weeks was $56.9 million, a decrease of $62.1 million compared to the same period in fiscal 2022[103] - Adjusted EBITDA was a loss of $8.9 million, compared to income of $23.5 million in the same period last year[104] - For the twenty-six weeks ended July 30, 2022, net sales were $961.3 million, a decrease of $110.0 million or 10.3% compared to the same period in fiscal 2022[105] - Gross profit for the twenty-six weeks was $455.6 million, down $113.9 million or 20.0%, with a gross margin of 47.4%, a decrease of 580 basis points[106] - Adjusted EBITDA for the twenty-six weeks decreased 88.0% to $9.7 million, or 1.0% of net sales, compared to $81.0 million, or 7.6% of net sales, in the prior year[117] - The company experienced a net loss of $55.6 million for the twenty-six weeks ended July 30, 2022, influenced by various operational costs and strategic initiatives[120] Operating Expenses - SG&A expenses increased to $258.5 million from $247.0 million year-over-year, contributing to the operating loss of $63.5 million[90] - SG&A expenses increased to $258.5 million, up $11.5 million or 4.7%, representing 55.8% of net sales, an increase of 610 basis points[96] - SG&A expenses for the twenty-six weeks were $517.6 million, an increase of $20.7 million or 4.2%, representing 53.8% of net sales, an increase of 740 basis points[108] Cash Flow and Investments - Net cash used for operating activities was $166.1 million for the twenty-six weeks ended July 30, 2022, compared to $82.1 million for the same period in 2021, primarily due to a decline in comparable sales and increased product costs[123] - Total capital expenditures for the twenty-six weeks ended July 30, 2022, were $50.7 million, up from $28.6 million in the same period in 2021, driven by new store openings and refresh projects[126] - The company plans to invest between $150,000 and $3 million per store for refresh projects, targeting over 80% of existing locations over the next seven to ten years[125] - Net cash provided by financing activities was $220.1 million during the twenty-six weeks ended July 30, 2022, compared to $57.5 million in the same period in 2021, primarily from borrowings under the Second Amended Revolving Credit Facility[128] - The company purchased the remaining outstanding stock of WeaveUp for $4.3 million in the first half of fiscal 2023, indicating ongoing strategic investments[127] - As of July 30, 2022, the company had the ability to borrow an additional $89.7 million under the Second Amended Revolving Credit Facility[128] Operational Challenges - The impact of COVID-19 continues to affect operations, particularly in terms of supply chain costs and consumer behavior[78] - The company is experiencing excess import freight costs due to increased shipping rates and port congestion, which are expected to decline in the latter half of fiscal 2023[82] Business Strategy - JOANN's strategy since 2016 has focused on transforming from a traditional retailer to a digitally-connected provider of creative products[76] - The business exhibits seasonality, with stronger net sales and net income expected in the second half of the fiscal year, particularly from September to December[131] Store Operations - JOANN operated 843 store locations across 49 states as of July 30, 2022, all of which were fully operational[78]

Financial Performance - Net sales decreased by 13.3% to $498.0 million compared to the first quarter of fiscal 2022, with total comparable sales decreasing by 12.9%[77] - Gross profit fell by 20.5% to $240.7 million, resulting in a gross margin of 48.3%, a decrease of 440 basis points from the prior fiscal year[77] - The company reported a net loss of $35.1 million for the first quarter of fiscal 2023, compared to a net income of $15.1 million in the same period last year[77] - Adjusted EBITDA for the first quarter of fiscal 2023 was $18.6 million, down from $57.5 million in the same period of the prior year[89] - Total comparable sales decreased primarily due to a reduction in transaction volume, particularly in the Craft Technology business, which had strong performance in the previous year[90] Expenses and Costs - SG&A expenses increased to $259.1 million, representing 52.0% of net sales, compared to 43.5% in the prior year[89] - SG&A expenses increased by $9.2 million or 3.7% to $259.1 million, representing 52.0% of net sales, an increase of 850 basis points, primarily due to higher distribution costs and inflationary pressures[92][93] Cash Flow and Capital Expenditures - Net cash used for operating activities was $122.2 million for the thirteen weeks ended April 30, 2022, compared to $43.5 million in the same period in fiscal 2021[106] - Total capital expenditures for the thirteen weeks ended April 30, 2022, were $19.3 million, up from $10.5 million in the same period in fiscal 2021, driven by new store openings and remodels[109] - Net cash provided by financing activities was $145.6 million during the thirteen weeks ended April 30, 2022, compared to $49.5 million in the same period in fiscal 2021, primarily from net borrowings under the Second Amended Revolving Credit Facility[112] Debt and Taxation - As of April 30, 2022, the company had $946.4 million of debt outstanding, an increase from $766.3 million as of May 1, 2021[96] - The effective income tax rate for the first quarter of fiscal 2023 was 30.8%, compared to 21.8% for the first quarter of fiscal 2022, reflecting a shift from tax provision to tax benefit status[98] Shareholder Actions - The company declared and paid a quarterly cash dividend of $4.5 million during the reporting period[77] - The company repurchased $1.9 million in face value of the Term Loan due 2024 at an average of 53% of par, resulting in a $1.0 million gain[97] Operational Insights - The impact of COVID-19 continues to affect operations, with ongoing supply chain disruptions and increased freight costs due to port congestion[76] - The company's net sales are stronger in the second half of the year compared to the first half, with peak sales occurring from September to December[115] - Working capital required for operations peaks during the second and third fiscal quarters due to increased inventory for the peak selling season[115] - There have been no material changes in the company's exposure to market risk during the thirteen weeks ended April 30, 2022[118] Store Operations - The total store location count at the end of the period was 846, down from 855 in the previous year[89] - The company acquired the remaining outstanding shares of WeaveUp for $4.3 million during the first quarter of fiscal 2023[77]