Michaels reported an uptick in its net sales and comparable store sales during its second quarter.
In the second quarter ended July 29, net sales increased 1.2% to $1.07 billion from $1.06 billion in the second quarter of fiscal 2016. The increase was primarily a result of the operation of 10 additional stores during the quarter. Comparable store sales increased 0.6%, driven by an increase in customer transactions, which was partially offset by a decline in average ticket.
Net income was $35.6 million, flat with the second quarter of fiscal 2016. Excluding net non-recurring, inventory-related purchase accounting adjustments and integration expenses associated with the acquisition of Lamrite West, adjusted net income for the second quarter of fiscal 2016 was $35.9 million. Diluted earnings per share increased 11.8% to $0.19, from $0.17 in the second quarter of fiscal 2016
“We reported record second quarter sales and earnings per share results which were above our initial guidance,” said Chuck Rubin, chairman and CEO, Michaels. “Our efforts to create a more experiential, omnichannel shopping experience, improve our value perception, and leverage our customer analytics are gaining traction earlier than we initially expected. As we begin the second half of the year, we believe these efforts will continue to deliver profitable growth and enable us to further expand our leadership in the arts and crafts channel.”