- Same-Store Sales Up 14% -
- EPS Guidance Increased -
IRVING, Texas, Jan. 6 /PRNewswire-FirstCall/ -- Michaels Stores, Inc.
(NYSE: MIK) today reported that sales for the month of December increased 19%
to $557.9 million from $470.2 million for the same period last year. Same-
store sales for the month increased 14%. Year-to-date sales of $3.149 billion
for fiscal 2004 increased 10% from $2.874 billion for the same period last
year. Same-store sales were up 5% year-to-date.
For the month, customer traffic was up 11% and average ticket increased
3%. Year-to-date customer traffic increased 4% and average ticket increased
1%. The stronger Canadian dollar year-over-year favorably affected the
Company's average ticket by approximately 40 basis points in December and
30 basis points year-to-date.
Michael Rouleau, Chief Executive Officer, stated, "We are extremely
pleased with the outstanding sales performance of our Michaels stores in
December. Same-store sales increased at a double-digit rate in all our zones,
and our Northeast, Pacific, and Southeast zones showed particular strength.
Our best performing categories were Christmas, Scrapbooking, and Kids Crafts.
Needlework and Yarn also did exceptionally well. Strong customer traffic
throughout the month was driven, in part, by the improved look and content of
our advertising circulars and by better weather versus last year. Our program
to improve the merchandising of our feature space worked extremely well this
Holiday season and supported the strong sales of our expanded holiday gift-
giving program. In addition, our recently implemented automated replenishment
system helped us maintain higher store-level in-stocks on our basic
assortments."
The Company currently expects same-store sales to increase 3% to 5% in
January. Anticipated increases in customer traffic and average ticket in
January are expected to be partially offset by a planned shift of custom frame
deliveries into February, negatively impacting same-store sales by
approximately 2% in January. Due to strong sales and gross margin results in
December and forecasted January performance, the Company has adjusted its
outlook for the fourth quarter. It now expects same-store sales for the
fourth quarter ending January 29, 2005, to increase 5% to 6% and fourth
quarter diluted earnings per share to range from $.75 to $.77. Strong sales
of seasonal Christmas product, reduced basic and seasonal clearance inventory
levels, and lower promotional discounts are expected to produce higher gross
margins as a percent of sales versus last year, partially offset by
anticipated year-over-year increases, as a percent of sales, in store
compensation, bonus and benefit costs, and professional fees.
After its January 2005 sales announcement on Thursday, February 3, 2005,
at 6:30 a.m. CT, the Company will report sales performance on a quarterly
rather than monthly basis. The Company will report 2005 first quarter sales
on Thursday, May 5, 2005, at 6:30 a.m. CT. Any interested party may view the
Company's press release at http://www.michaels.com .
Michaels Stores, Inc. is the world's largest specialty retailer of arts,
crafts, framing, floral, wall decor, and seasonal merchandise for the hobbyist
and do-it-yourself home decorator. As of January 6, 2005, the Company owns
and operates 849 Michaels stores in 48 states and Canada, 164 Aaron Brothers
stores, eight Recollections stores, and three Star Wholesale operations.
This document contains forward-looking statements that reflect our plans,
estimates, and beliefs. Any statements contained herein (including, but not
limited to, statements to the effect that Michaels or its management
"anticipates," "plans," "estimates," "expects," "believes," and other similar
expressions) that are not statements of historical fact should be considered
forward-looking statements and should be read in conjunction with our
consolidated financial statements and related notes in our Annual Report on
Form 10-K for the fiscal year ended January 31, 2004, and in our Quarterly
Reports on Form 10-Q for the quarters ended April 1, 2004, July 31, 2004, and
October 30, 2004. Specific examples of forward-looking statements include,
but are not limited to, forecasts of same-store sales growth and diluted
earnings per share. Our actual results could differ materially from those
discussed in these forward-looking statements. Factors that could cause or
contribute to such differences include, but are not limited to, our ability to
remain competitive in the areas of merchandise quality, price, breadth of
selection, customer service, and convenience; our ability to anticipate and/or
react to changes in customer demand; changes in consumer confidence;
unexpected consumer responses to changes in promotional programs; unusual
weather patterns; the execution and management of our store growth and the
availability of acceptable real estate locations for new store openings; the
effective maintenance of our perpetual inventory and automated replenishment
systems and related impacts to inventory levels; delays in the receipt of
merchandise ordered from our suppliers due to delays in connection with either
the manufacture or shipment of such merchandise; transportation delays
(including dock strikes and other work stoppages); changes in political,
economic, and social conditions; commodity cost increases and currency issues;
financial difficulties of any of our insurance providers, key vendors, or
suppliers; and other factors as set forth in our Annual Report on Form 10-K
for the fiscal year ended January 31, 2004, particularly in "Critical
Accounting Policies" and "Risk Factors," and in our other Securities and
Exchange Commission filings. We intend these forward-looking statements to
speak only as of the time of this release and do not undertake to update or
revise them as more information becomes available.
This press release is also available on the Michaels Stores, Inc. website
(http://www.michaels.com ).
SOURCE Michaels Stores, Inc.
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http://www.michaels.com
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Company News On-Call:
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CONTACT:
Jeffrey N. Boyer, Executive Vice President -
Chief Financial Officer, +1-972-409-1581, or Christopher J.
Holland, Vice President - Finance, +1-972-409-1667, both of
Michaels Stores, Inc.
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