- Same-Store Sales Up 13% -
IRVING, Texas, July 8 /PRNewswire-FirstCall/ -- Michaels Stores, Inc.
(NYSE: MIK) reported today that total sales for the month of June increased
19% to $267.7 million from $225.5 million for the same period last year.
Same-store sales for the month were up 13% on a flat average ticket, a 12%
increase in customer traffic, and a 1% increase in custom frame deliveries.
Year-to-date sales of $1.196 billion increased 12% from $1.069 billion for the
same period last year. Same-store sales were up 7% year-to-date on a 2%
increase in average ticket and a 5% increase in customer traffic. A favorable
currency translation, due to the stronger Canadian dollar, contributed
approximately 0.3% to the average ticket increase year-to-date.
Michael Rouleau, Chief Executive Officer, said, "We are extremely pleased
with our sales for the month. Our strongest zones were the Pacific,
Northeast, and mid-Atlantic and our best performing categories were
Scrapbooking, Frames, Custom Framing, and General Crafts. Changes in the
timing of our promotional programs for the second quarter and higher store-
level in-stocks contributed to our excellent performance in June."
The Company currently expects same-store sales for the second quarter to
increase 3% to 5%, with same-store sales for July expected to decrease 2% to
4% due to the aforementioned changes in advertising. It expects second
quarter diluted earnings per share to be in the $.38 to $.40 range and full
year diluted earnings per share to increase 15% to 20%.
Rouleau added, "We are also very pleased to announce that, on June 13th,
we completed our most important initiative to date: the implementation of our
Automated Replenishment system. We have been planning for this day since 1996
as this installation allows us to begin our transition from an operations-
focused company to a merchandise-driven one. A world of opportunities has
opened for Michaels Stores as we now have the tools to take our business to a
new level, further improving our top-line sales performance and our overall
profitability."
The Company also announced that it has repurchased an additional 568,800
shares of the Company's common stock during the month under its stock
repurchase plans at an average price of $54.42 per share. As of July 8, 2004,
under its repurchase plans, the Company is authorized to repurchase
approximately 1.9 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 July 2004 sales results on Thursday,
August 5, 2004 at 6:30 a.m. CT. Any interested party may view the Company's
press release at http://www.michaels.com .
The Company plans to release its second quarter earnings results on
Wednesday, August 25, 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 4251270.
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 July 8, 2004, the Company owns and
operates 823 Michaels stores in 48 states and Canada, 159 Aaron Brothers
stores, four ReCollections stores, and three Star 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, 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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