8-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): January 5, 2006

Jo-Ann Stores, Inc.
__________________________________________
(Exact name of registrant as specified in its charter)

Ohio	001-06695	34-0720629
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)
5555 Darrow Rd., Hudson, Ohio		44236
_________________________________ (Address of principal executive offices)		___________ (Zip Code)

Registrant’s telephone number, including area code: (330) 656-2600

Not Applicable
______________________________________________
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01 Regulation FD Disclosure.

On January 5, 2006, Jo-Ann Stores, Inc. issued a press release announcing its net sales for the five weeks and year-to-date period as of December 31, 2005. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.

Item 9.01 Financial Statements and Exhibits.

d) Exhibits

Exhibit No. - 99.1 Press Release of Jo-Ann Stores, Inc., dated January 5, 2006.

The information contained in this Current Report on Form 8-K, including the exhibit attached hereto, is being furnished to the Securities and Exchange Commission and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. Furthermore, the information contained in this Current Report on Form 8-K shall not be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Jo-Ann Stores, Inc.
January 5, 2006	By:	/s/ James Kerr
		Name: James Kerr
		Title: Vice President, Controller

Exhibit Index

Exhibit No.	Description
99.1	Press Release of Jo-Ann Stores, Inc., dated January 5, 2006.

EX-99.1

Exhibit 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE

CONTACT: Don Tomoff
Vice President, Finance and Treasurer
Jo-Ann Stores, Inc.
330/463-6815
http://www.joann.com

JO-ANN STORES ANNOUNCES DECEMBER SALES RESULTS

HUDSON, OH – January 5, 2006 – Jo-Ann Stores, Inc. (NYSE:JAS) reported today that December net sales increased 4.6% to $273.5 million from $261.5 million in the same period last year. December same-store sales decreased 0.5% compared to a same-store sales increase of 4.2% last year.

Year-to-date net sales increased 3.9% to $1.742 billion from $1.677 billion in the prior year. Year-to-date same-store sales decreased 0.6%, versus a same-store sales increase of 2.9% for last year.

Performance Improvement Update

The Company is in the process of implementing its previously disclosed strategic transformation. At this time the primary focus is on inventory reduction and maximizing inventory sell-through. In addition, in anticipation of a challenging year in fiscal 2007, the Company is undertaking several initiatives, which should impact the business over time:

• Reduction in new store openings. The Company expects to reduce the number of new store openings from 44 stores in fiscal 2006 to 25-30 stores in fiscal 2007, and defer other discretionary capital spending;

• Adjustment of store merchandise assortments. The Company expects to reduce space and inventory investment in under-performing categories such as finished seasonal and home-décor, while emphasizing product categories, such as craft components.

• Gross margin rate restoration. The Company expects to reduce advertising spending, be more discrete with coupons, and take steps to reduce clearance through tighter purchasing disciplines.

• Selling, general and administrative expense reduction. The Company is aggressively reviewing all areas of the business for opportunities to reduce expenses. Completion of the new distribution center in Opelika, Alabama in fiscal 2007 should enable improved efficiencies in the distribution and logistics network over time.

The Company also is moving ahead with the rebuilding and strengthening of its management team. As previously announced, it is separating the roles of Chairman, President and Chief Executive Officer. Alan Rosskamm will retain the position of Executive Chairman. The Board has established a search committee, retained an executive search firm and commenced a search for the new President and CEO. The Company is seeking an entrepreneurial leader from outside the Company who can bring merchandising and operational best practices to Jo-Ann. While the Company hopes to complete the CEO search as expeditiously as possible, it is committed to taking the necessary time to get the right person and the right management team in place.

Jo-Ann Stores, Inc. (http://www.joann.com), the leading national fabric and craft retailer with locations in 47 states, operates 688 Jo-Ann Fabrics and Crafts traditional stores and 154 Jo-Ann superstores.

This press release contains forward-looking statements that are subject to certain risks and uncertainties. Our actual results, performance or achievements may materially differ from those expressed or implied in the forward-looking statements. Risks and uncertainties that could cause or contribute to such material differences include, but are not limited to, general economic conditions, changes in customer demand, changes in trends in the fabric and craft industry, seasonality, the availability of merchandise, changes in the competitive pricing for products, longer-term unseasonable weather or wide spread severe weather, the impact of our and our competitors store openings and closings,the successful and timely completion and integration of the Company’s new distribution center, our ability to recruit and retain management personnel, our ability to sell through our inventory at acceptable prices, fuel and energy costs, changes in tariff and freight rates, consumer debt levels, and other capital market and geo-political conditions. Other important factors that may cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company’s Securities and Exchange Commission filings.