Irving, Texas – Michael’s Stores reported an impressive 66% jump in net income during the third quarter of fiscal 2013, rising to $58 million from $35 million in the same quarter a year earlier. Net sales grew about 10%, to $1.1 billion from $1.01 billion.
In addition, same-store sales increased 7.9%, driven by a 3.9% increase in transactions and a 3.8% increase in the company's average ticket in addition to a 20 basis point positive impact from deferred custom framing revenue. Higher gross profit, partially driven by improved merchandise margin, helped increase net income.
During the third quarter of fiscal 2013, the company opened 19 Michaels stores, relocated six and closed one store.
The company operated 33 net new Michaels stores and Aaron Brothers at the end of the third quarter of fiscal 2013 as compared to the same period in fiscal 2012. Michaels opened 40, relocated 14 and closed two Michaels stores year to date.
Additionally, the company relocated two and closed four Aaron Brothers stores year to date. The company now operates 1,259 stores including 1,137 Michaels stores and 122 Aaron Brothers stores.