IRVING -- Arts and crafts retailer Michaels Stores said Wednesday that it earned $112 million in its fiscal fourth quarter, a 15 percent increase from the previous year, as shoppers spent more on their visits.
Same-store sales for the quarter, ended Feb. 2, increased 1.7 percent, pushed by a 2.3 percent increase in the average ticket. Same-store sales -- at stores open at least a year --are a key measure used by retailers to judge the health of its company. The number of transactions at its stores decreased, though, by 0.6 percent in the quarter, the retailer said.The strong fourth quarter helped the Irving-based company boost full-year net income by 22 percent to $214 million, as revenue increased to $4.4 billion from $4.2 billion in fiscal 2011.The financial report was the first issued since Chuck Rubin was named the company's chief executive last month. Rubin had been CEO of Ulta Beauty since 2010. Rubin succeeded John Menzer, who stepped down as CEO after suffering a stroke.Rubin said little on a conference call with analysts, who were not allowed to ask questions due to the company's pending filing for an initial public offering. The company made its filing last year, but it was put off by the CEO's illness.Sales in the quarter increased to $1.52 billion, up 8.5 percent, from a year ago. The company logged an additional $66 million from sales for the period because it had an extra week, the company said.Michaels said it ended the year with $56 million in cash and equivalents on hand, and $3.04 billion in debt, a decrease of $449 million. It had 1,099 stores at the end of the quarter, 35 more than in the year-ago quarter.Executives said Wednesday that the company plans to spend $130 million to $140 million to open 50 to 55 stores in fiscal 2013.Michaels still hopes to sell stock to the public again. A year ago, the company, which was taken private by Blackstone Group and Bain Capital in a $6 billion leveraged buyout in 2006, told the Securities and Exchange Commission it wants to raise $500 million in an initial public offering that will be used in part to pay down debt.Sandra Baker, 817-390-7727Twitter: @SandraBakerFWSTHave more to add? News tip? Tell us
