Michaels looking good in Q2

Irving, Texas – Better timing of distribution expenses, the elimination of operating costs of 40 shuttered stores and an improved merchandising strategy helped drive sales growth at Michaels in the second quarter.



The retailer posted net income of $35.7 million in the second quarter, compared to a net loss of $48.6 million in the same period a year earlier.



Net sales increased by 4% to $984.3 million, from $948.2 million. Same-store sales increased by 1.6%. The impact of a strong dollar on currency exchange rates negatively affected both results.



“I am pleased with our second quarter performance, which was driven by general sales strength across our business and continued financial discipline,” said Chuck Rubin, chairman and CEO. “We delivered 2.9% same-store sales growth on a local currency basis, reflecting our differentiated merchandise offering and progress on our initiatives to elevate our customer experience.”



Michaels continues to expect fiscal 2015 total net sales growth of 3.2% to 3.7% and a same-store sales increase of 1.5% to 2%. The guidance is based on opening approximately 30 net new and/or relocated stores during fiscal year 2015. For the third quarter, Michaels expects same-store sales to be up 1.5% to 2.5%.