Life after the Rainbow Loom at Michaels

As the popularity of the Rainbow Loom waned this year so did sales at Michaels where third quarter comps declined 0.8% compared to the prior year.



Michaels total sales increase 1.1% to $1.13 billion thanks to the addition of 19 new Michaels and five new Aaron Brothers stores. The 0.8% same store sales decline was due in part to the fact that Michael’s was up against a prior year quarter when comps grew by 7.9% due to the wildly popular Rainbow Loom product. Despite the weak top line performance, profits increased 36.2% to $64 million compared to $47 million while earnings per share increased 19.2% to 31 cents from 26 cents.



"We are very pleased with our third quarter sales and earnings as our customers responded to our improved shopping environment, great exclusive product and compelling marketing events,” said Michaels CEO Chuck Rubin “As we look to the fourth quarter we are well positioned to make further progress on these initiatives and deliver to our customers an exciting in-store and on-line shopping experience."



Michaels ended the quarter with 1,166 Michaels stores in 49 states and Canada and 121 Aaron Brothers stores.