- Same-Store Sales Increase 0.8% -
IRVING, Texas, Nov. 3 /PRNewswire-FirstCall/ -- Michaels Stores, Inc.
(NYSE: MIK) reported today that total sales for the third quarter were
$839.7 million, a 5.0% increase over last year's $799.9 million. Same-store
sales for the quarter increased 0.8% on a 3.7% increase in average ticket, a
3.2% decrease in transactions, and a 0.3% increase in custom frame deliveries.
Year-to-date sales of $2.406 billion increased 8.9% from $2.209 billion for
the same period last year. Same-store sales year-to-date were up 4.2% over
the same period a year ago on a 0.9% increase in transactions, a 2.8% increase
in average ticket, and a 0.5% increase in custom frame deliveries. A
favorable Canadian currency translation added approximately 0.4% to the
average ticket increase for both the third quarter and year-to-date.
Michael Rouleau, President and Chief Executive Officer, said, "In light of
the challenging retail environment during the third quarter, we are pleased
with our overall performance and continue to expect to deliver record earnings
for the quarter. Our sales results for the quarter were affected by the
unfavorable impact of unseasonably warmer weather in certain parts of the
country this year, measurably higher energy & fuel costs for consumers and a
reduction in our promotional program. For the third quarter, our domestic
Michaels Stores' Southeast, Pacific, and Central zones delivered the strongest
same-store sales performances and the strongest departmental performances came
in our General Crafts, Custom Framing, Yarn, and Ribbon and Wedding
categories. The growth in our General Crafts category is due to the
continuing strong performance of our Jewelry and Bead businesses."
The Company continues to expect fiscal 2005 third quarter diluted earnings
per share to range from $0.36 to $0.38 versus diluted earnings per share of
$0.31 for the third quarter of 2004, representing a year over year increase of
between 16% and 23%. Third quarter operating income growth over the prior
year period is currently expected to be driven by strong gross margin
expansion partially offset by higher selling and administrative expenses as a
percent of sales. The Company continues to expect same-store sales in the
fourth quarter of fiscal 2005 to increase between 3% and 5% over the same
period last year and fiscal 2005 full year same-store sales are forecast to
increase 3% to 5%. Consistent with prior guidance, the company expects fourth
quarter diluted earnings per share to range from $.88 to $.92 and fiscal year
2005 diluted earnings per share to be between $1.80 and $1.85, representing an
increase of 24% to 28% over the $1.45 diluted earnings per share reported for
fiscal 2004.
The Company also announced that it has repurchased 1,380,600 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 $34.72 per
share. As of November 3, 2005, under its repurchase plans, the Company is
authorized to repurchase approximately 1.61 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 third quarter 2005 earnings results and
outlook for fiscal 2005 on Tuesday, November 22, 2005, and will conduct a
conference call at 4:00 p.m. CT on that date, hosted by Michaels Stores
President and CEO, Michael Rouleau and Executive Vice President - Chief
Financial Officer, Jeffrey Boyer. 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 recording will be available for 30 days
after the date of the event. Recordings may be accessed at
http://www.michaels.com or by phone at 973-341-3080, PIN 5446633.
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 November 3, 2005, the Company owns
and operates 889 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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