Michaels Stores profit up in Q3

Irvine, Texas Michaels Stores said Tuesday that it swung to a third-quarter profit on the strength of Halloween and improved sales in other categories, including bakeware and jewelry making.

Michaels reported a profit of $15 million in the period that ended Oct. 31, compared with a net loss of $20 million in the same period last year.

Total sales increased 2.5% to $929 million. In addition, same-store sales increased for the first time in two years. Same-store sales rose 1.3%, as transactions increased 4.7% but average customer receipts declined 3.5%.

Inventory was lower in each store, resulting in fewer markdowns. Sales were boosted by shoppers attracted to impulse items priced in $1, $3 and $5 bins.

So far this year, Michaels has opened 18 new stores, including its first urban store in Manhattan, and relocated five others. It also closed nine Aaron Brothers stores.