I saw this in the Joann's December project newsletter:
Yes, it's a wreath made to look like balls of yarn. The project idea can be found here.
If I had my yarn store, I would totally make one of these for the front door of the store. But I must say that the construction of the wreath appears to be a waste of perfectly good yarn. Gluing yarn to styrofoam balls is good for the weight of the finished wreath, but my heart would be heavy when I looked at that unusable yarn.
Instead, I think you could make this a wonderful gift presentation. Find a fabulous pattern, buy the yarn and ball it into 10 same-size balls of yarn. Using some heavy duty wire (that will hold its shape but not damage the yarn) thread it through the balls to make a ring. Insert two knitting or one crochet hook into the wreath and add a bow in a complimenting color. Add any embellishments, if needed (like stitch markers or fringe or beads - anything the pattern requires. Include the pattern in the box and voila! It's a full knit or crochet kit in the shape of wreath - and no yarn was wasted in the making. :)