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Michaels Reports Holiday Performance
Posted by: Editors | January 23, 2007
Michaels Stores reported that same-store sales increased 1.2 percent for the nine-week period ending December 30, and total sales for the same period increased 4.2 percent over the previous year. The December same-store sales increase of 3.7 percent was offset by soft sales in early November, primarily due to changes to the company’s Veteran’s Day promotion. The company says weaknesses in the yarn category during the nine-week period reduced overall same-store sales by approximately 2.4 percent.
Domestic same-store sales for the November/December holiday selling season were strongest in the Northeast, Southwest, and Southeast regions. Best-performing categories included framing, impulse, general crafts, and Christmas. The average ticket for the period increased 2 percent, customer transactions decreased 0.9 percent and custom framing deliveries increased 0.1 percent.
For the remainder of the quarter, the company will continue to focus on profitability, which includes eliminating a lower profit custom framing promotional offer during January. Fourth quarter same-store sales are expected to increase 0.5 percent with total sales expected to increase 7.5 percent, including 4.5 percent growth from the additional week in fiscal 2006 over the 13-week fiscal 2005 fourth quarter.
For fiscal 2006, full-year same-store sales are expected to increase 0.2 percent and total sales are expected to increase approximately 5 percent, with approximately 1.5 percent attributable to the 53rd week.
Michaels will release its fourth quarter and full year fiscal 2006 earnings results on Wednesday, March 7, and will conduct a conference call at 4 p.m. central time on that date. To participate, call 973/633-6740, or access online at www.michaels.com.
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