IRVING, Texas, Oct. 18 /PRNewswire-FirstCall/ -- Michaels Stores, Inc.
(NYSE: MIK) today reported that it has updated its same-store sales and
earnings outlook for the third quarter, fourth quarter, and full year of
fiscal 2005. The Company currently expects same-store sales for the third
quarter to range from even with the same period last year to an increase of
1%. Diluted earnings per share for the third quarter are expected to range
from $.36 to $.38, representing an increase of 16% to 23% over the prior year
third quarter diluted earnings per share of $.31. For the fourth quarter, the
Company now expects same-store sales to increase 3% to 5% and diluted earnings
per share to range from $.88 to $.92, representing an increase of 17% to 23%,
over the same period last year. For fiscal 2005, full year same-store sales
are forecast to increase 3% to 5% over fiscal 2004 and diluted earnings per
share are forecast to range from $1.80 to $1.85, representing growth of 24% to
28% over fiscal 2004 diluted earnings per share of $1.45.
Michael Rouleau, Chief Executive Officer, said, "Despite changes in
consumer shopping patterns during the third quarter, we are generally pleased
with our overall performance and expect to deliver record earnings for the
quarter. The effect of higher energy costs, unseasonably warm weather in most
of the country, and a reduction in our promotional program during the quarter
are considered the primary drivers of a decline in our customer transactions.
However, at the same time, we have experienced a solid increase in the average
value of each transaction. Importantly, our business has generally improved
relative to our plan as we moved through the third quarter and we are pleased
with our sell-through on Fall and Halloween seasonal product."
Mr. Rouleau continued, "We are excited about the upcoming holiday season
as we build on our successful "Gifts for the Family" program from last year,
improve the effectiveness of our advertising program and provide great
products and values to our customers. Although we have never been better
prepared for a holiday season, the fourth quarter may be challenging and,
therefore, we will continue to manage our business prudently. With our
centralized management of inventory and our recent strategic investment in
inventory systems, we can effectively manage our business with the flexibility
required in today's retail environment. We expect that fiscal 2005 will be
our ninth year of record sales and operating performance and that we will be
well positioned for another record year in 2006, our tenth in a row."
The Company also announced that it has repurchased an additional 1,088,500
shares of the Company's common stock during the third quarter of fiscal 2005
under its stock repurchase plans at an average price, including commissions,
of $35.36 per share. As of October 18, 2005, 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 also announced that on October 24, 2005, Jeffrey N. Boyer,
Executive Vice President and Chief Financial Officer, will present at the
Johnson Rice Investor Conference in Houston, Texas. A copy of Mr. Boyer's
presentations will be made available on the Company's web site under Investor
Relations.
The Company plans to release its 2005 third quarter sales results on
Thursday, November 3, 2005, at 6:30 a.m. CT and its 2005 third quarter
earnings results on Tuesday, November 22, 2005 at 4:00 p.m. CT. Any
interested party may view the Company's press releases 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 October 18, 2005, the Company owns
and operates 886 Michaels stores in 48 states and Canada, 166 Aaron Brothers
stores, 11 Recollections stores, and four Star Wholesale operations.
This document may contain 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 29, 2005, and in our Quarterly
Reports on Form 10-Q for the quarters ended April 30, 2005 and July 30, 2005.
Specific examples of forward-looking statements include, but are not limited
to, forecasts of same-store sales growth, operating income, 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 conditions; 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, energy and fuel cost increases,
currency fluctuations, and changes in import duties; our ability to maintain
the security of electronic and other confidential information; 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 29, 2005, particularly in "Critical Accounting Policies and
Estimates" 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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CONTACT:
Lisa K. Klinger, Vice President - Treasurer
and Investor Relations of Michaels Stores, Inc., +1-972-409-1528,
or klingerl@michaels.com
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