Arts & Crafts retailer Michaels Store's net sales up 13.1% to $821mn

26 May '05

7 min read

nation's largest home furnishing retailer michaels stores inc reported unaudited financial results for its first quarter ended april 30, 2005. net income for the quarter increased $17.2 million to $46.5 million, up 58.6% versus $29.3 million for the same quarter last year. diluted earnings per share increased 57.1% for the quarter to $0.33 versus $0.21 in the first quarter of 2004.

michael rouleau, chief executive officer, said, "we are very pleased with our record sales and earnings performance for the first quarter. our strong same-store sales were largely driven by leveraging our new perpetual inventory and automated replenishment merchandising systems. these systems enable us to maintain higher store-level merchandise in-stocks and to maximize our promotional programs, our feature item merchandising, and our high growth trend businesses.

operating performance
total sales for the quarter increased 13.1% to $821.0 million from $725.9 million for the same period last year. same-store sales for the quarter increased 7.8% on a 2.2% increase in average ticket, a 4.9% increase in transactions, and a 0.7% increase in custom frame deliveries. a favorable currency translation, due to the stronger canadian dollar, contributed approximately 0.4% to the average ticket increase for the quarter. the best performing geographic regions were the pacific, southeast, and northern zones, and our best departmental performances came in our paper crafting, general crafts, wedding & ribbon, and kids crafts categories with strong yarn department sales contributing solidly to overall same-store sales for the quarter.

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