Michaels Stores’ Profit Climbs in 2nd Quarter

Michaels Stores Inc., the world’s largest arts-and-crafts retailer, said second-quarter profit climbed more than fourfold on strong sales and lower expenses. The company also benefited from new stores.

Net income rose to $21.5 million, or 30 cents a share, from $4.67 million, or 7 cents, a year ago, as sales jumped 19% to $576.6 million. The results far exceeded the 18-cent average estimate of analysts polled by Thomson First Call.

Shares of Irving, Texas-based Michaels, which also operates Aaron Brothers stores, jumped as much as 14% to $45 in extended trading. They had closed off $2.15 at $39.75 on the NYSE.

Michaels also said that August sales have been stronger than it expected, and it projects same-store sales this month to rise 5% to 6% from a year earlier, rather than a previous estimate that they would be little changed.