Michaels Stores Q2 Earnings Up
{{#rendered}} {{/rendered}}Michaels Stores Inc. (MIK) said Wednesday its second-quarter net income rose about 15 percent as it sold more full-priced merchandise and expanded its operating margins.
The arts and crafts retailer said its net income for the quarter rose to $30.8 million, or 22 cents per share, from $26.7 million, or 19 cents per share, for the same quarter last year.
Wall Street analysts on average forecast earnings of 21 cents per share, according to Reuters Estimates.
{{#rendered}} {{/rendered}}Total sales for the quarter increased 9.2 percent to $745.5 million, while the company's sales at stores open at least a year, a key gauge known as same-store sales, rose 4.2 percent. Robust sales of jewelry and beading, paper-crafting, foam and yarn products boosted its performance, the company said.
Michaels Stores said it expects its third quarter same-store sales (search) to increase between 2 percent and 4 percent, pushing its operating income up between 15 percent and 20 percent. It forecast third-quarter earnings per share between 38 cents and 40 cents.
Looking ahead to the fourth quarter, the company said it expects its same-store sales to increase 4 percent to 6 percent and net earnings to rise between 20 percent and 25 percent.
{{#rendered}} {{/rendered}}In fiscal 2005, its same-store sales will rise between 4 percent and 6 percent and total sales will rise between 9 percent and 11 percent, the company said earnings per share for 2005 are expected to range from $1.85 to $1.90 per share, Michaels Stores said.