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Michaels Earnings Slip In Q1 As Transactions Stumbled

For the first quarter ended May 4, Michaels Stores, Inc. announced that net income decreased 11.3% to $47 million. According to Michaels, comparable store sales declined 0.7% due to a 3% decrease in transactions partly offset by a 1.7% gain from a higher average ticket and a positive 0.6% impact from deferred custom framing revenue.

Net sales increased 1.5% to $993 million, the company related.

Michaels asserted that it experienced its strongest sales increases for the quarter in custom framing and yarn.

Operating income for the quarter decreased 12.2% to $130 million and, as a proportion of net sales, slipped 200 basis points to 13.1%.

As of May 2, Michaels owned and operated about 1,113 namesake stores in 49 states and Canada, and 123 Aaron Brothers locations, including about 50 units opened since the first quarter of the last fiscal year.