Michaels sees improved 4Q income

IRVING, Texas Michaels Stores reported net income for the year ended Jan. 31 of $4 million compared to a net loss of $32 million for fiscal 2007. Fourth quarter net income improved $21 million to $74 million compared to a net income of $53 million for the corresponding period of the prior year.

Net sales for the fourth quarter decreased 2.5% to $1.268 billion from $1.301 billion last year with same-store sales declining 5.6%. Net sales for the year were $3.817 billion, a decrease of 1.2% from $3.862 billion for the same period last year. Same-store sales for the year decreased 4.6% from fiscal 2007.

Brian Cornell, CEO, said, "Our focus during the fourth quarter was on driving sales and maximizing gross margin dollars while effectively clearing through our seasonal merchandise. Consumers responded to the value message, particularly during the month of December where we saw improving traffic trends. Sales of higher ticket, more discretionary categories such as seasonal and home decor declined while sales in our core arts and craft businesses were more resilient."