Arts & Crafts retailer Michaels Store's net sales up 13.1% to $821mn
26 May '05
7 min read
the company also announced that it has repurchased an additional 1,474,200 shares of the company's common stock since the end of fiscal 2004 under its stock repurchase plans at an average price of $35.52 per share. as of may 25, 2005, under the repurchase plans, the company is authorized to repurchase approximately 3.4 million additional shares plus such shares as may be repurchased with proceeds from the future exercise of options under the company's 2001 general stock option plan. in addition, the company has previously announced that it has called for the redemption of its $200 million, 9 1/4% senior notes in july 2005, which would result in a pre- tax charge to earnings of $12.1 million to be recognized in the second quarter, representing a combination of a call premium and the unamortized debt costs associated with the notes.
outlook
the company currently forecasts same-store sales for the second quarter of fiscal 2005 to increase 5% to 7% with operating margin expanding approximately 100 basis points, driving an increase of approximately 25% to 30% in operating income versus the second quarter of fiscal 2004.
gross margin as a percent of sales in the second quarter is expected to contract approximately 40 basis points versus the prior year due to the timing of merchandise plan-o-gram resets and the related markdowns. for the first half of fiscal 2005, gross margin as a percent of sales is currently forecast to expand approximately 50 e sales for the second quarter of fiscal 2005 to increase 5% to 7% with operating margin expanding approximately 100 basis points, driving an increase of approximately 25% to 30% in operating income versus the second quarter of fiscal 2004.
marketing@alchempro.com
