UPDATE 1-Jo-Ann Stores Q2 tops Street, raises FY profit view

* Q2 EPS $0.20 vs est $0.02

* Revenue $439.3 mln vs est $438.0 mln

* Sees FY EPS $3.20-$3.35 vs est $3.23

* Sees FY same store sales up about 3-4 pct

* Shares rise 6 pct post-market

Aug 25 (Reuters) - Jo-Ann Stores Inc JAS.N posted a quarterly profit that beat market expectations as benefits from sourcing and control of inventory boosted gross margins, prompting the fabric and crafts retailer to raise its full-year profit view.

The retailer's shares, which have fallen 14 percent in value over the past month, rose 6 percent to $39.19 in after-market trade. They closed at $36.82 Wednesday on the New York Stock Exchange.

The Hudson, Ohio-based company earned $5.4 million, or 20 cents a share, for the second quarter, compared with a net loss of $3.2 million, or 13 cents a share, a year ago.

Revenue rose 5 percent to $439.3 million.

Analysts on average were looking for a profit of 2 cents a share, before items, on revenue of $438.0 million, according to Thomson Reuters I/B/E/S.

Gross margins for the second quarter rose 120 basis points to 50.5 percent.

The retailer forecast a full-year profit of $3.20-$3.35 a share, up from its prior view of $2.95-$3.10 a share.

Jo-Ann Stores, which expects to open at least 50 new stores and remodel at least 50 stores in fiscal 2012, expects fiscal 2011 capital expenditures of $52-$54 million. (Reporting by Vidya Lakshmi in Bangalore; Editing by Anne Pallivathuckal)