Holiday sales up 1.5% at Michael's

Michaels Companies Inc. had plenty to smile about during the 2014 holiday season -- its first holiday season since going public in June.

Net sales for the eleven-week period from Nov. 2 to Jan. 17 increased 3.5% and same-store sales increased 1.5% from the comparable prior year period. For the full fourth quarter of fiscal 2014, net sales are expected to be in the range of about $1.59 billion to $1.6 billion, with an expected increase in same-store sales ranging from 0.8% to 1.2%. Michaels expects operating income to be $286 million to $291 million.

In November, Michaels posted a bigger-than-expected 36% increase in earnings and raised its guidance for the year, its second straight quarter of strong results following June’s initial public offering.

Michaels also said that private-equity owners Bain Capital and Blackstone Group LP, each with a 39.9% stake in the retailer, plan to sell as much as 10% of their current stakes as part of an offering of up to 18.4 million shares. Michaels had said that selling shareholders were planning to offer as much as $500 million in shares.