Irving, Texas Michaels Stores reported Tuesday that its net income for the fourth quarter, ended Jan. 31, increased $21 million to $74 million, compared with $53 million for the same quarter last year.
Net sales for the quarter slipped 2.5% to $1.26 billion, from $1.30 billion last year. Same-store sales declined 5.6%, a slip the company blames for a 5.0% decrease in average ticket sales.
The retailer drove sales “by clearing out seasonal merchandise and delivering value around core arts and craft merchandise,” CEO Brian Cornell said.
For the year ended Jan. 31, Michaels reported net income of $4 million, compared with a net loss of $32 million for fiscal 2007.
Net sales for the year were $3.81 billion, down 1.2% from $3.86 billion for the same period last year. Same-store sales for the year decreased 4.6% from fiscal 2007.
During fiscal 2008, Michaels opened 51 new stores, relocated 11 stores, remodeled 20 and closed five locations. It also relocated one Aaron Brothers unit, and closed five others during this period.
The chain’s capital expenditures for fiscal 2009 will be approximately $50 million. It plans to significantly reduce real estate activity by scaling back new store openings.