Michaels Net Falls 11.3 Percent in Q1
IRVING, Texas-Weak sales and margins combined with higher expenses to cut 11.2 percent from Michaels' first quarter net income, which totaled $47 million.
Net sales in the quarter, which ended on May 4, rose 1 percent to $993 million, but this included a drop in same-store sales of 0.7 percent, largely due to a 3 percent decrease in transactions. Gross margin was off 14 basis points to 41 percent. Selling, general and administrative expenses headed upward both in dollars (4.2 percent) and as a percentage of sales--71 basis points to finish the quarter at 27.3 percent.
During the quarter, the company opened 15 Michaels stores, relocated four and closed one. It also closed three Aaron Brothers stores.