Michaels’ Sales Growth Continues With Strong 4Q

By RetailFOXBusiness

Michaels Stores reported on Wednesday a 15% jump in fourth-quarter earnings as a higher average ticket outweighed a decline in overall transactions.

The privately-held retailer, North America’s largest seller of arts and crafts supplies, said its profit was $112 million, up from $97 million in the prior-year period.

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Sales climbed 8.5% to $1.52 billion. Same-store sales edged up 1.7% versus 4.4% growth last year. The average ticket rose 2.3%, while transactions fell 0.6%.

Michaels has benefited from improved sales over the past year and continues to expand. The company, which includes the Aaron Brothers chain, ended the quarter with 1,225 total stores, up 2.3% from a year earlier.

Last year, chief executive John Menzer suffered a stroke, and Michaels postponed its plans for an initial public offering while he recovered. Menzer eventually resigned in July.

Michaels recently hired Ulta Salon Cosmetics & Fragrance (NASDAQ:ULTA) CEO Chuck Rubin to take the helm.