Michaels Reports 66% Surge In Third-Quarter Profit

Arts-and-crafts superstore Michaels reported third-quarter earnings that were 66 percent higher than last year largely driven by more transactions and customers who spent more per visit.

The Irving, Texas-based chain earned net income of $58 million compared to $35 million in the prior-year quarter. Net sales for the retailer rose 10 percent, to $1.1 billion up from last year's $1.01 billion.

Michaels said its same-store sales rose 7.9 percent, driven by a 3.9 percent increase in transactions and a 3.8 percent growth in the company's average receipt total.

Gross margin improved to 40.5 percent from 39.6 percent on higher sales and better merchandise margin although somewhat offset by increased freight and distribution costs.

During the third quarter ending Nov. 2, Michaels opened 19 stores, relocated six and closed one store.

For more see:
-This Michaels earnings statement

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