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Michaels Q4 Comps Bolster Annual Results

For the fourth quarter ended February 2, Michaels Stores stated that net income increased to $112 million versus $97 million in the year-prior period. Comparable store sales increased 1.7% driven by a 2.3% increase in average ticket and a 0.6% decrease in transactions.

Net sales, including about $66 million from the 53rd week of fiscal 2012, increased 8.5% compared with the fourth quarter of fiscal 2011.

The company said the fluctuation in exchange rates between the Canadian and United States dollar favorably affected average ticket for the quarter by approximately 30 basis points. The company said its strongest sales increase came from custom framing products.

Operating income increased 13.7% to $266 million and, as a percent of net sales gained, 80 basis points to 17.5%, the retailer stated.

For the full fiscal year, net income increased to $214 million from $176 million in the year earlier, the company related. Comps increased 1.5% driven by a 0.8% increase in transactions and a 0.7% increase in average ticket.

Net sales, including the $66 million from the fiscal 2012 53rd week, increased 4.7% to $4.41 billion year over year.

Operating income advanced 8.1% to $615 million, and as a percent of net sales, increased 50 basis points to 14%, the company noted.

During fiscal 2012, Michaels opened 38, closed three and relocated 13 namesake units while closing eight Aaron Brothers stores.