Michaels Stores Inc.’s reported that net profit increased almost 66%, to $58 million, for its third quarter ended November 2, 2013, up from $35 million in the same period last year. Sales climbed by 7.9%, driven by transaction increase of 3.9% and average ticket sales increase of 3.8%, the company said.
Net sales increased 10.3% to $1.12 billion from $1.01 billion while gross margin widened to 40.5% from 39.6% on higher sales and improved merchandise margin, partly offset by increased freight and distribution costs. During the third quarter, the company opened 19 new Michaels stores, relocated six and closed one store, bringing the total number of stores (including Aaron Brothers stores, which the company also owns) to 1,259.
Year to date, the company has seen net income increase 27.4% to $121 million and net sales gain 4%.