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.
For the fiscal year ending on Feb. 2, net sales rose 4.7 percent to $4.4 billion. Part of this was a same-store sales gain of 1.5 percent, consisting of an increase in transactions of 0.8 percent and a 0.7 percent climb in average ticket.
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.