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IPO Update: JOANN Proposes Terms For $175 Million IPO

Mar. 05, 2021 3:05 PM ETJOANN Inc. (JOAN) Stock2 Comments


  • JOANN has filed proposed terms for a U.S. IPO of its common stock.
  • The firm sells sewing and craft-making products in the U.S. via its retail store network and online.
  • JOAN has grown revenue during the pandemic but I question the durability of that growth as the pandemic wanes, so I'll watch the IPO from the sidelines.
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Quick Take

JOANN (NASDAQ:JOAN) has filed to raise $175 million from the sale of its common stock in an IPO, according to an amended registration statement.

The company sells sewing and craft-making products to consumers in North America.

While JOAN has grown revenue impressively during the pandemic, it contracted before the pandemic, the company has significant debt and I’m concerned about its growth trajectory as the pandemic wanes, so I'll pass on the IPO.

Company and Technology

Hudson, Ohio-based JOANN was founded to make sewing and arts and crafts supplies available to consumers via its large retail network of 860 stores, with over 95,000 SKUs in stores and 245,000 SKUs via its online website.

Management is headed by president and CEO Wade Miquelon, who has been with the firm since 2016 and was previously CFO and EVP at Walgreens Boots Alliance (WBA) and held the same positions at Tyson Foods (TSN).

The company’s primary offerings include:

  • Own-brand portfolio

  • Omnichannel fulfillment

  • In-store and online education

JOANN has received at least $124 million from investors including private equity firms Leonard Green & Partners and TCW/Crescent.

Customer Acquisition

The firm pursues an omnichannel approach, seeking customers through all manner of online and offline media, advertising, social media, direct mail and in-store promotions, events and instructional classes.

Management says the firm has approximately 33% of market share for sewing retail products in the U.S., which represented 49% of its net sales in the twelve months ended Oct. 31, 2020.

Selling, G&A expenses as a percentage of total revenue have been trending higher as revenues have fluctuated, as the figures below indicate:

Selling, G&A

Expenses vs. Revenue



39 Weeks Ended Oct. 31, 2020


FYE February 1, 2020


FYE February 2, 2019


Source: Company registration statement

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This article was written by

Donovan Jones profile picture

Donovan Jones is a research specialist with 15 years of experience identifying opportunities for IPOs and software companies.

He also leads the investing group

IPO Edge

which offers: actionable information on growth stocks through first look S-1 filings, previews on upcoming IPOs, an IPO calendar for tracking what’s on the horizon, a database of U.S. IPOs, and a guide to IPO investing to walk you through the entire IPO lifecycle - from filing to listing to quiet period and lockup expiration dates.

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Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (2)

Cambridge STR profile picture
Today should be the IPO. With an EV/S at a low number and valuation over a billion, JOANN will attract much attention over the next few quarters. Recent brick and mortar retailer IPOs have had impressive results: ASO, LESL, and others. WOOF was not a great IPO yet they went out the gate with a high valuation.
@williamwilliam Retailers w/ inelastic demand (niche) and proper management will do well. The first is true. I can't speak for the second.
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