Michaels Net Up 15.5 Percent in Q4, 21.6 Percent for Fiscal Year
March 15, 2013,
IRVING, Texas-Fourth-quarter net income for Michaels Stores totaled $112 million, an increase of 15.5 percent and bringing the retailer's net income for the year to $214 million, up 21.6 percent.
Michaels benefited from an overall gain of 8.5 percent in net sales, to $1.5 billion, including a 1.7 percent rise in same-store sales in the quarter. The comparable-store number consisted of a 2.3 percent pickup in average ticket, offset by a decrease of 0.6 percent in transactions. Custom framing products turned in the strongest performance of all the categories in the quarter.
Fourth-quarter gross margin jumped 85 basis points to 40.8 percent. Selling, general and administrative expenses increased 6.5 percent in dollars but declined 44 basis points as a percentage of sales to 22.6 percent.
During the fiscal year, Michaels opened 38 Michaels stores, closed three and relocated 13. It also closed eight Aaron Brothers stores last year.