Michaels third-quarter net income soars

At Michaels, a higher gross profit, partially driven by improved merchandise margin, helped to increase its net income for the third quarter ended Nov. 2.

The company’s net income during the quarter soared 66%, rising to $58 million from $35 million in the prior-year quarter. Net sales grew 10%, to $1.1 billion from $1.01 billion. Meanwhile, same-store sales increased 7.9%, driven by a 3.9% increase in transactions and a 3.8% increase in the company's average ticket in addition to a 20 basis point positive impact from deferred custom framing revenue.

The company operated 33 net new Michaels stores and Aaron Brothers at the end of the quarter as compared to the prior-year quarter. Michaels opened 40, relocated 14 and closed two Michaels stores year-to-date. The company also relocated two Aaron Brothers stores and closed four of them year-to-date. The company now operates 1,259 stores including 1,137 Michaels stores and 122 Aaron Brothers stores.