Michaels Raises Q1 Estimates

IRVING, TX-Michaels has boosted its same-stores sales estimates for its Q1, which ends April 30, to a 5% to 7% year-over-year increase. The crafts retailer had previously targeted a 3% to 5% jump.

“Our first quarter performance so far has been strong, primarily driven by a solid increase in customer traffic and transactions,” says Michael Rouleau, the chain’s president and CEO. Departments that have performed well include yarn, scrapbooks, general crafts and kid’s crafts, he says. The Pacific Southeast and Central regions are the company’s best performing.

A Wachovia Capital Markets report reiterated the firm’s previous outperform rating for Michaels. “We believe the company continues to benefit from the completion of an important systems upgrade cycle, which includes the implementation of perpetual inventory and automatic replenishment systems, as well as the strong fundamental trends in the Arts & Crafts sector,” the report says.