- First Quarter Sales Climb 11% -
IRVING, Texas, May 6 /PRNewswire-FirstCall/ -- Michaels Stores, Inc.
(NYSE: MIK) today reported that total sales for the month of April increased
2% to $210.6 million from $205.6 million for the same period last year. Same-
store sales for the month declined 1% on a 1% increase in average ticket and a
1% decrease in both traffic and custom frame deliveries. Total sales for the
first quarter increased 11% to $726.1 million from $656.3 million last year.
For the quarter, same-store sales were up 6% on a 3% increase in average
ticket, a 4% increase in customer traffic, and a 1% decrease in custom frame
deliveries. A favorable currency translation, due to the stronger Canadian
dollar, contributed approximately 0.4% to the average ticket increase in the
month and 0.5% to the average ticket increase in the quarter.
Michael Rouleau, Chief Executive Officer, said, "We are disappointed that
our April same-store sales fell below our expectations. The earlier Easter,
coupled with less advertising for the month, affected our performance more
than we originally anticipated. For the month, our best performing zones were
the Central, Southeast, and Northeast and our strongest categories were Yarn,
Kids Crafts, Books, and Scrapbooking. For the quarter, we were very pleased
with our same-store sales increase of 6% that topped original expectations for
a 3% to 5% increase. Our best performing zones were the Northeast, Northern,
and mid-Atlantic and our best performing categories were Scrapbooking, Yarn,
General Crafts, and Kids Crafts."
Rouleau added, "We continue to expect first quarter diluted earnings per
share to be in the $.36 to $.38 range, a 20% to 26% increase over last year's
first quarter diluted earnings per share of $.30. We also continue to expect
our same-store sales for the remainder of the year to increase approximately
3% to 5% in each quarter and our diluted earnings per share to increase 16% to
17% over last year's $2.54. Additionally, we expect same-store sales for May
to increase 3% to 5%."
The Company also announced that it has repurchased an additional
293,000 shares of the Company's common stock since the end of fiscal 2003
under its stock repurchase plans at an average price of $49.72 per share. As
of May 6, 2004, under the repurchase plans, the Company is authorized to
repurchase approximately 2.6 million additional shares plus such shares as may
be repurchased with proceeds from the future exercise of options under the
Company's 2001 General Stock Option Plan.
The Company plans to release its first quarter earnings results on
Wednesday, May 26, 2004, and will host a conference call at 4:00 p.m. CT on
that date to discuss them. Those who wish to participate in the call may do
so by dialing 973-633-6740. Any interested party will also have the
opportunity to access the call via the Internet at http://www.michaels.com . To
listen to the live call, please go to the website at least fifteen minutes
early to register and download any necessary audio software. For those who
cannot listen to the live broadcast, a replay will be available for 30 days
after the date of the event. Replay may be accessed at http://www.michaels.com or by
phone at 973-341-3080, PIN 4251247.
The Company plans to release its May 2004 sales results on Thursday,
June 3, 2004 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 retailer of arts, crafts,
framing, floral, wall decor, and seasonal merchandise for the hobbyist and
do-it-yourself home decorator. The Company owns and operates 819 Michaels
stores in 48 states and Canada, 158 Aaron Brothers stores, located primarily
on the West Coast, two ReCollections stores in the Dallas/Fort Worth
Metroplex, and two wholesale operations.
Certain statements contained herein which are not historical facts are
forward looking statements that involve risks and uncertainties, including,
but not limited to, estimation risks, customer demand and trends in the arts
and crafts industry, related inventory risks due to shifts in customer demand,
the effect of economic conditions, the impact of competitors' locations or
pricing, the availability of acceptable locations for new stores, difficulties
with respect to new information system technologies, supply constraints or
difficulties, the results of financing efforts, the effectiveness of
advertising strategies and other risks detailed in the Company's Securities
and Exchange Commission filings. The Company intends these forward-looking
statements to speak only as of the time of this release and does 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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Related links:
http://www.michaels.com
Company News On-Call:
http://www.prnewswire.com/comp/115769.html
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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