WITH 28 PERCENT JUMP IN OCTOBER SALES, MICHAELS EXPECTS THIRD QUARTER NET INCOME TO DOUBLE
WITH 28 PERCENT JUMP IN OCTOBER SALES,
MICHAELS EXPECTS THIRD QUARTER NET INCOME TO DOUBLE
IRVING, Texas, Nov. 6 /PRNewswire/ -- Michaels Stores, Inc. (NASDAQ: MIKE) said today it expects to report that net income will double for the third quarter based on increasingly strong sales gains at its 140 arts, crafts and specialty merchandise stores.
Reporting that sales for October increased 25 percent on a same condition basis, Michaels said that sales for October 1991 increased 28 percent to $48.2 million from $37.8 million for October 1990. Sales for the three months ended Nov. 3, 1991, increased 21 percent to $103.6 million from $85.4 million in the third quarter of 1990. Same condition sales for the third quarter increased 17 percent.
As a result, the company said it believes that its reported net income for the latest quarter will increase by at least 100 percent over net income of $578,000 ($0.06 per share) reported for the same period in 1990.
For the first nine months of fiscal 1991, sales increased 17 percent to $266.7 million from $228.6 million the prior year. Sales by Michaels stores in operation for the first nine months of both fiscal years increased 9 percent.
Michaels explained that its strong sales performance, in spite of the generally lackluster retailing environment, reflects the implementation of certain merchandising, advertising and operating strategies initiated more than a year ago by the company. Moreover, Michaels has continued to take aggressive steps to further strengthen its financial condition. The company has reduced its bank debt to $8.5 million at the end of the quarter as compared to $41.1 million a year ago.
The nation's leading retailer of arts and crafts, Michaels Stores, Inc. offers a wide selection of picture framing materials, silk and dried flowers, hobby and art supplies, creative crafts, and party, seasonal and holiday merchandise. The company owns and operates 140 stores in 19 primarily Southern states, from California to the Carolinas.
/CONTACT: Don Morris, chief financial officer of Michaels Stores, 214-580-8242/
(MIKE) CO: Michaels Stores, Inc. ST: Texas IN: REA SU: ERP KD -- NY060 -- 1771 11/06/91 13:40 EST