Michaels 1Q Profit Nearly Triples

Privately owned Michaels Stores reported that its fiscal first-quarter earnings nearly tripled due to lower expenses and improved sales and margins.

For the three months that ended in April, Michaels posted earnings of $37 million, compared to $13 million a year earlier. Revenues grew 5.7% to $953 million and same-store sales rose 4.3%. The gross margin was up 1.9 points to 41.2%.

CEO John Menzer said, "We are pleased with our record level of sales and operating performance during the first quarter. In addition, Michaels is proud to be included in the prestigious ranking of the top 50 U.S. brands, debuting at #29 on Interbrand's annual Best Retail Brands report."

Private equity firms Bain Capital and Blackstone Group (NYSE: BX) acquired Michaels in 2006 for about $6 billion. Irving, Texas-based Michaels is the largest arts and crafts retailer in North America, with more than 1,000 stores under the Michaels Arts and Crafts Stores and Aaron Brothers banners.