Michaels returns to profit in Q1

IRVING, Texas Michaels Stores reported net income of $4 million, for the first quarter of fiscal 2009, an improvement of $24 million from a net loss of $20 million in the first quarter of fiscal 2008. Total sales for the quarter were $852 million, a 0.6% increase from fiscal 2008 first quarter sales of $847 million. Same-store sales for the comparable 13-week period decreased 2% of which 1.7% was related to the negative impact of foreign exchange rates.

John Menzer, CEO, said, "Our operating units performed relatively well, which were offset by the continued negative impact of a weakened Canadian dollar. We were very encouraged with the sales in a number of key categories, including beads and jewelry making, impulse items and wall frames. Our new marketing and merchandising programs are connecting with the Michaels customers and have helped drive an increase in customer transactions, even in today's difficult retail environment."