Michaels crafts a successful growth strategy

Michaels says its new marketing and merchandising strategies are resonating with customers, as the arts and crafts retailer reported an uptick in same-store sales for the third quarter.



The retailer said comps increased 3.1% in the period ended Oct. 31. Sales rose 3.4% to $1.17 billion. The company posted a profit of $76.8 million, or 37 cents per share, compared with $64.1 million, or 31 cents per share a year prior.



"I am pleased with our third quarter performance where we delivered 3.1% comparable store sales growth on a local currency basis,” said Chuck Rubin, chairman and CEO. “We also improved our operating margin by 70 basis points and delivered a 19.4% increase in diluted earnings per share. The positive results in a choppy consumer spending environment demonstrate our strategy is resonating with our customers."



Michaels says it expects 82 cents to 85 cents in per-share earnings for the current quarter.



"Despite the uneven consumer environment, we are proud of our operating performance to date. We are excited about our merchandising and marketing plans for the fourth quarter and what our stores and website will offer to our customers. We remain focused on executing our long term strategy and driving value for our shareholders," Rubin said.



As of Oct. 3, Michaels owns and operates 1,196 Michaels stores in 49 states and Canada and 118 Aaron Brothers stores.