Michaels shares optimistic outlook after 2015 success

New store expansion and expectations for same-store sales growth are in store for Michaels Companies in 2016, according to CEO Chuck Rubin.



Rubin sounded an optimistic tone about Michaels’ future following the release of fourth quarter results he characterized as “strong” and attributed to an improved shopping experience, increased customer communications and trend right holiday assortments.



“We delivered against each of the financial goals we established at the beginning of fiscal 2015, despite stronger than expected headwinds from foreign exchange rates,” Rubin said.



Net sales in the quarter increased 4.6%, or 6.4% on a constant currency basis, to $1.7 billion and same-store sales increased 3.1%, or 4.7% on a constant currency basis. The outlook for the current year calls for same-store sales on a constant currency basis to increase between 2.8% and 3.3%. Profits increased 17.3% to $183.7 and earnings per share increased 16% to 87 cents.



The company ended the year with 1,196 Michaels stores and 117 Aaron Brothers stores which generated annual sales of roughly $4.9 billion. Full year same-store sales increased 1.8%, or 3.2% on a constant currency basis. Full year profits totaled $362.9 million, or $1.72 per share.



"As we look to fiscal 2016, our strategic priorities remain unchanged,” Rubin said. “We will stay focused on our customer and improving her shopping experience by investing in our stores and simplifying store layouts; offering a relevant and compelling merchandise assortment that is also on-trend; utilizing more effective marketing; and making further progress on our Fuel for Growth program.”



The company will continue to face many of the same headwinds in 2016 as it did last year – currency exchange and a choppy retail environment – but Rubin said the company’s sales and earnings outlook, “reflects the consistency and underlying resilience of the Michaels business.”