Michaels weaves strong profits in Q1

Irving, Texas – Net income at the Michaels Companies Inc. skyrocketed 47% to $67 million in the first quarter of fiscal 2015 compared to $45 million in the same quarter a year earlier. A large drop in interest expense helped fuel strong profit growth.



Net sales climbed 2% to $1.08 billion, from $1.05 billion. Same-store sales rose 0.3%. Michaels said unfavorable weather and a strong U.S. dollar hindered sales growth.



“We delivered another solid quarter, despite several headwinds such as foreign exchange rates, unfavorable weather early in the quarter and the previous year's Rainbow Loom sales,” said Chuck Rubin, chairman and CEO. “Our teams remained focused on execution and maintaining expense discipline resulting in overall financial performance that was within the range of our expectations."



Michaels reiterated previously issued guidance of total net sales growth of 3.2% to 3.7% and a same-store sales increase of 1.5% to 2% for fiscal 2015. For the second quarter, Michaels expects same-store sales to rise 1%-2%.