{"id":201489,"date":"2021-03-13T20:25:00","date_gmt":"2021-03-13T17:25:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/joann-is-going-public-5-things-to-know-about-the-arts-and-crafts-retailer\/"},"modified":"2021-03-13T20:25:00","modified_gmt":"2021-03-13T17:25:00","slug":"joann-is-going-public-5-things-to-know-about-the-arts-and-crafts-retailer","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/joann-is-going-public-5-things-to-know-about-the-arts-and-crafts-retailer\/","title":{"rendered":"#\n  Joann is going public: 5 things to know about the arts-and-crafts retailer"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4f6cbba363f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4f6cbba363f\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/joann-is-going-public-5-things-to-know-about-the-arts-and-crafts-retailer\/#Joann_plans_to_offer_a_dividend\" >Joann plans to offer a dividend<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/joann-is-going-public-5-things-to-know-about-the-arts-and-crafts-retailer\/#Joann_has_proprietary_fabric_designs_and_patterns\" >Joann has proprietary fabric designs and patterns<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/joann-is-going-public-5-things-to-know-about-the-arts-and-crafts-retailer\/#The_majority_of_Joann_customers_make_items_to_give_or_donate\" >The majority of Joann customers make items to give or donate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/joann-is-going-public-5-things-to-know-about-the-arts-and-crafts-retailer\/#Half_of_Joanns_store_locations_have_been_identified_for_a_refresh_over_the_next_seven-to-10_years\" >Half of Joann\u2019s store locations have been identified for a refresh over the next seven-to-10 years<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/joann-is-going-public-5-things-to-know-about-the-arts-and-crafts-retailer\/#Leonard_Green_Partners_will_own_more_than_two-thirds_of_Joann_stock_once_the_company_is_public\" >Leonard Green &amp; Partners will own more than two-thirds of Joann stock once the company is public<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/joann-is-going-public-5-things-to-know-about-the-arts-and-crafts-retailer\/#Tonya_Garcia\" >Tonya Garcia<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Joann is going public: 5 things to know about the arts-and-crafts retailer<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\">\n<\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000192730\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Arts-and-crafts retailer Joann Inc.\u2019s shares rose in their trading debut Friday, before surrendering those gains, after the company\u2019s initial public offering priced at $12 a share, below its proposed price range of $15 to $17. <\/p>\n<p> The Hudson, Oh.-based company<br \/>\n        JOAN,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/225253587\/composite\" class=\"positive\">+2.08%<\/bg-quote><br \/>\n       sold 10.9 million shares to raise $130.8 million. The stock started trading on the Nasdaq Friday under the ticker \u201cJOAN.\u201d There were 11 banks underwriting the deal, led by BofA Securities and Credit Suisse. <\/p>\n<div class=\"paywall\">\n       Joann was previously a publicly traded company, but was taken private by private-equity firm Leonard Green &amp; Partners in 2011 in a $1.6 billion deal that left if saddled with debt. The company was founded nearly 75 years ago in Cleveland.<\/p>\n<p>Joann calls itself the leader in the sewing category, but is growing in the broader arts-and-crafts category, which has gained interest during COVID-19 as shoppers spend more time at home and seek out pastimes.<\/p>\n<p><strong>See: <\/strong>Dollar Tree expanding in fresh food, higher prices, and new store formats<\/p>\n<p>Michaels Cos. Inc.<br \/>\n        MIK,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207984083\/composite\" class=\"negative\">-0.05%<\/bg-quote><br \/>\n       announced on March 3 that it will be taken private in a $3.3 billion deal, and the following day reported fourth-quarter profit and sales that beat expectations.<\/p>\n<p>And Dollar Tree Inc.<br \/>\n        DLTR,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203712248\/composite\" class=\"positive\">+0.04%<\/bg-quote><br \/>\n       announced last week during its fourth-quarter earnings that it has completed the nationwide rollout of Crafter\u2019s Square, its expanded arts-and-crafts department.<\/p>\n<p>The tailwinds Joann has enjoyed during COVID-19 were accompanied by headwinds.<\/p>\n<p>\u201c[O]ur momentum was temporarily interrupted in fiscal year 2020 by the unanticipated headwind of incremental U.S. tariffs on Chinese imports that we estimate, before mitigation, would have amounted to $75\u00a0million of additional annual costs,\u201d wrote Wade Miquelon, chief executive of Joann, in a letter included in the prospectus.<\/p>\n<p>However, it was able to reduce its debt load, which stood at $1.36 billion on Nov. 2, 2019 using internally generated cash flow. That allowed the company to retire and repay $433.8\u00a0million in principal amount, leaving it with a debt balance of $929.7\u00a0million as of October\u00a031, 2020.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Miquelon has been CEO since February 2019 after serving as chief financial officer and as CEO on an interim basis.<\/p>\n<p>The company has been undergoing a strategic turnaround since 2016, with a focus on digital enhancement and a goal of making gains across \u201ccreative products.\u201d Joann\u2019s assortment now spans 95,000 SKUs (stock-keeping units) in stores, and as many as 245,000 SKUs online.<\/p>\n<p><strong>Also: <\/strong>ThredUp IPO: 5 things to know about the secondhand e-commerce site before it goes public<\/p>\n<p>Joann had net sales of $2.241 billion in 2020, up from $2.324 billion in 2019, and $2.314 billion in 2018. But it swung to a net loss of $546.6 million in 2020, after net income of $35.3 million in 2019 and $96.5\u00a0million in 2018.<\/p>\n<p>Joann says the company generated $423 million in net sales during the 12 months ending Oct. 31, 2020 from its omnichannel platform. As of the end of the fiscal third-quarter, the company had more than 69 million customers in its database.<\/p>\n<p>Joann\u2019s fiscal year ends on the Saturday closest to the last day of January. <\/p>\n<p>The company plans to use the proceeds from the offering to pay down its $72.8\u00a0million in outstanding borrowings under a Second Lien Facility. <\/p>\n<p>Here are five more things to know about Joann as it prepares to go public:<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Joann_plans_to_offer_a_dividend\"><\/span>Joann plans to offer a dividend<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Joann says it will pay a quarterly dividend of 40 cents per share. <\/p>\n<p><strong>And: <\/strong>National Retail Federation forecasts 2021 retail sales growth between 6.5% and 8.2% as COVID-19 vaccine continues roll out<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Joann_has_proprietary_fabric_designs_and_patterns\"><\/span>Joann has proprietary fabric designs and patterns<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Among the company\u2019s private-label brands are Casa and Place &amp; Time.<\/p>\n<p>The company also has a partnership with WeaveUp that allows customers to create their own fabrics and other items using digital printing tools.<\/p>\n<p>And Joann has a patented <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> called Ditto that helps users with pinning and cutting sewing patterns, \u201cthe most common pain point reported by our customers.\u201d<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetTweet\n            inline\n    scope-web|mobileapps\n  article__inset\n          article__inset--type-InsetTweet\n            article__inset--inline\n  \"><\/p>\n<div class=\"dynamic-inset-container article__inset__dynamic\">\n<style>\n            iframe.twitter-tweet {\n                width: 100% !important;\n            }\n        <\/style>\n<blockquote class=\"twitter-tweet\" lang=\"en\"><p>\n            <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/cool_yeah_ok\/status\/1368285448204812290\"><\/a>\n            <\/p><\/blockquote>\n<p>        <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/div>\n<\/p><\/div>\n<h6><span class=\"ez-toc-section\" id=\"The_majority_of_Joann_customers_make_items_to_give_or_donate\"><\/span>The majority of Joann customers make items to give or donate<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p> Joann says that 70% of its customers make their creations to give away or donate.<\/p>\n<p>Another quarter of customers make items to be sold on platforms including eBay Inc.<br \/>\n        EBAY,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/204653455\/composite\" class=\"negative\">-0.78%<\/bg-quote><br \/>\n       and Etsy Inc.<br \/>\n        ETSY,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202790087\/composite\" class=\"positive\">+0.14%<\/bg-quote>\n      <\/p>\n<p>Joann has acquired eight million new customers since Feb. 1, 2020, many of whom made their own face masks. Joann also put a program in place called \u201cMake to Give,\u201d which donates mask-making materials to any individual or organization that needs them.<\/p>\n<p>\u201cCustomers typically purchase from Joann with a project in mind that requires several component items,\u201d the prospectus said. <\/p>\n<p>\u201cIn that vein, we believe our physical footprint is an advantage, as most customers regularly want to explore what is new, see how various items and colors work together, see how a fabric drapes, feel the texture and seek help from our experienced team members.\u201d<\/p>\n<p>Many of the new customers are younger and more affluent, and tend to spend more, with many purchasing a crafting machine and subsequently spending an average of more than $500 in the following year.<\/p>\n<p>Joann quotes data from SVP Worldwide showing that the 65% of new sewing enthusiasts in 2020 were 30 years old or younger.<\/p>\n<p><strong>Don\u2019t miss: <\/strong>25 small-cap stocks that analysts expect to rise as much as 64% over the next year<\/p>\n<p>Joann\u2019s core customer is a woman in her upper 40s with a higher-than-average household income.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Half_of_Joanns_store_locations_have_been_identified_for_a_refresh_over_the_next_seven-to-10_years\"><\/span>Half of Joann\u2019s store locations have been identified for a refresh over the next seven-to-10 years<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Joann has four levels of store redesign, costing $150,000 on the low end for a \u201clight\u201d refresh to $3 million for the most extensive revamps. Joann has conducted 24 pilots to devise this tiered plan.<\/p>\n<p>There were 855 Joann stores in 49 states as of Jan. 30, 2021. The company says that a select group are in need of the most extreme redesign.<\/p>\n<p>\u201cBased on the positive outcomes and learnings from these pilots as well as additional improvements being developed, we believe we can achieve an average net sales uplift ranging from 5% to 25% from projects where we refresh an existing location.\u201d<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Leonard_Green_Partners_will_own_more_than_two-thirds_of_Joann_stock_once_the_company_is_public\"><\/span>Leonard Green &amp; Partners will own more than two-thirds of Joann stock once the company is public<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Joann is controlled by Leonard Green &amp; Partners, and the firm will own 69% of the company\u2019s common stock once shares begin trading, meaning it will continue to make most of the decisions.<\/p>\n<p>As long as Leonard Green owns 50% of common stock, it can nominate up to five directors once the company is public. If it owns a smaller percentage, it can nominate fewer directors. Leonard Green would have to own 10% of shares or fewer to lose the ability to nominate at least one director.<\/p>\n<p>\u201cAccordingly, LGP currently controls the election of our directors and could exercise a controlling interest over our business, affairs and policies, including the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ointment of our management and the entering into of business combinations or dispositions and other corporate transactions,\u201d the prospectus said.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Tonya Garcia\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Tonya_Garcia\"><\/span>Tonya Garcia<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D2F0DA202F59%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Joann is going public: 5 things to know about the arts-and-crafts retailer &#8221; Arts-and-crafts retailer Joann Inc.\u2019s shares rose in their trading debut Friday, before surrendering those gains, after the company\u2019s initial public offering priced at $12 a share, below its proposed price range of $15 to $17. The Hudson, Oh.-based company JOAN, +2.08%&#8230;<\/p>\n","protected":false},"author":1,"featured_media":201490,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-201489","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/201489","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=201489"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/201489\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/201490"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=201489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=201489"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=201489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}