MICHAELS STORES INC
424B3, 1994-10-24
HOBBY, TOY & GAME SHOPS
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<PAGE>

                                            Registration Statement No. 33-55537
                                                  Filed Pursuant to Rule 424(c)


                           MICHAELS STORES, INC.

             SUPPLEMENT DATED OCTOBER 24, 1994 TO PROSPECTUS DATED
                            SEPTEMBER 21, 1994


     With respect to the resale prospectus covering 901,066 shares of Common
Stock of Michaels Stores, Inc. (the "Company") filed with the Form S-3
Registration Statement No. 33-55537:

     On October 21, 1994, the closing price of the Common Stock on The Nasdaq
National Market was $39.

     The section entitled "Selling Shareholders" in this Prospectus is hereby
amended by adding the following disclosure as part of the Selling Stockholder
table on page four of this Prospectus with such disclosure replacing the
existing references in such table to Prudential-Bache Capital Partners I.,
L.P., Alan Altschuler, Stephen J. Berman, Alan L. and Myriam G. Magdovitz and
John E. Welsh III. Such disclosure (i) reflects a distribution of Common Stock
by Prudential-Bache Capital Partners I., L.P. to its partners and (ii) sets
forth information as of October 24, 1994, concerning the indicated Selling
Stockholders, who do not have, nor within the past three years have had, any
position, office or other material relationship with the Company or any of its
predecessors or affiliates, except as noted below.

<TABLE>
<CAPTION>
                                       SHARES BENEFICIALLY OWNED           COMMON STOCK       SHARES BENEFICIALLY OWNED AFTER
                                       PRIOR TO THE OFFERING (1)       OFFERED FOR SELLING            THE OFFERING (1)
                                       -------------------------           STOCKHOLDERS'              ----------------
NAME OF BENEFICIAL OWNER                  NUMBER      PERCENT               ACCOUNT(2)              NUMBER         PERCENT
- ------------------------                  ------      -------               ----------              ------         -------
<S>                                      <C>          <C>                   <C>                     <C>            <C>
Prudential-Bache Partners, Inc.           32,090         *                    22,892                 9,198            *

Paul M. Albert, Jr.                          779         *                       580                   199            *

Alan Altschuler                            6,527         *                     4,967                 1,560            *

James T. Barton                            1,559         *                     1,159                   400            *

Tamara A. Baum                               221         *                       155                    66            *

Nicholas Bayard                              649         *                       580                    69            *

<FN>
_____________________________

     (1) Includes shares indirectly held through ownership of limited
partnership interests (or, in the case of Prudential-Bache Partners, Inc.,
limited partnership interests and general partnership interests) in
partnerships that own shares of Common Stock.

     (2) The Shares listed in this Selling Stockholder Table do not include
the Escrowed Shares (as defined in this Prospectus). In the event that the
former capital stockholders of Leewards (as defined in this Prospectus) in
fact receive all or part of the Escrowed Shares, this Selling Stockholder
Table will be amended or supplemented to include such Shares and to include
the following former capital stockholders of Leewards that may also receive a
portion of the Escrowed Shares: Jon H. Browne (a former director and/or
officer of Leewards), GIPEN & Co., MONY Life Insurance Company of America and
The Mutual Life Insurance Company of New York.
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                                       SHARES BENEFICIALLY OWNED           COMMON STOCK       SHARES BENEFICIALLY OWNED AFTER
                                       PRIOR TO THE OFFERING (1)       OFFERED FOR SELLING            THE OFFERING (1)
                                       -------------------------           STOCKHOLDERS'              ----------------
NAME OF BENEFICIAL OWNER                  NUMBER      PERCENT               ACCOUNT(2)              NUMBER         PERCENT
- ------------------------                  ------      -------               ----------              ------         -------
<S>                                       <C>         <C>                   <C>                     <C>            <C>
Allan M. Benton                              779         *                       580                   199            *

Stephen J. Berman(3)                       4,393         *                     4,098                   295            *

Daniel Bowden                                519         *                       464                    55            *

Charles Breakstone                           324         *                       290                    34            *

Mark E. Brefka                               324         *                       290                    34            *

George H. Bristol                            846         *                       696                   150            *

James D. Brown                               324         *                       290                    34            *

J. Mark T. Buxton                            665         *                       580                    85            *

Thomas J. Byrne, Jr.                         714         *                       580                   134            *

John C. Cadle, Jr.                           303         *                       271                    32            *

Ralph J. Carballal                           589         *                       433                   156            *

Randall L. W. Caudill                        779         *                       580                   199            *

John H. Copenhaver                           389         *                       290                    99            *

Nathan D. Cortright IV                       390         *                       290                   100            *

George E. Councill                           221         *                       174                    47            *

James F. Crowley                           1,559         *                     1,159                   400            *

Carol A. Curley                              155         *                       139                    16            *

David A. DeWahl, Jr.                         389         *                       290                    99            *

Michael K. Diana                             324         *                       290                    34            *

Dorothy J. Dotson                            857         *                       742                   115            *

Thomas S. Douglas                            486         *                       433                    53            *

Michael J. Downey                            650         *                       464                   186            *

Edward M. Elliott                             95         *                        85                    10            *

Robert L. Errico                             714         *                       580                   134            *

Stephen Farrier                              596         *                       464                   132            *

Clinton L. Fenton                            177         *                       158                    19            *

Frederick G. Ferber                          390         *                       290                   100            *

Rocky Ferrell                                242         *                       216                    26            *

Thomas M. Flohr                              235         *                       185                    50            *

Theodore V. Fowler                           858         *                       680                   178            *

Peder L. A. Fredrikson                       359         *                       290                    69            *

W. Robert Friedman, Jr.                      880         *                       696                   184            *

Dempsey L. Gable                             177         *                       139                    38            *

<FN>
_____________________________

     (3)This Selling Stockholder is a former director and/or officer of
Leewards.

</TABLE>


<PAGE>

<TABLE>
<CAPTION>

                                       SHARES BENEFICIALLY OWNED           COMMON STOCK       SHARES BENEFICIALLY OWNED AFTER
                                       PRIOR TO THE OFFERING (1)       OFFERED FOR SELLING            THE OFFERING (1)
                                       -------------------------           STOCKHOLDERS'              ----------------
NAME OF BENEFICIAL OWNER                  NUMBER      PERCENT               ACCOUNT(2)              NUMBER         PERCENT
- ------------------------                  ------      -------               ----------              ------         -------
<S>                                       <C>         <C>                   <C>                     <C>            <C>
James T. Gahan                             1,559         *                     1,159                  400             *

Bennett M. Goldstein                         194         *                       155                   39             *

Jeffrey Harfst                               103         *                        93                   10             *

Brian Hehir                                  192         *                       147                   45             *

Ralph O. Hellmold                          1,108         *                       866                  242             *

Robert P. Helms                              915         *                       649                  266             *

Sheldon M. Hirschberg                        234         *                       185                   49             *

Alan D. Hogan                              1,429         *                     1,159                  270             *

Robert Hoguet, III                           194         *                       174                   20             *

Edmond P. V. Horsey                          176         *                       139                   37             *

Fredrick W. Hulton                           942         *                       742                  200             *

Joseph E. Humenik                            259         *                       232                   27             *

Joanne M. Keates                             162         *                       147                   15             *

Harry H. Kelly                               346         *                       278                   68             *

Gerald L. Kuschuk                            623         *                       464                  159             *

William Leddy                                324         *                       290                   34             *

Alan & Myriam Magdovitz                    5,043         *                     4,677                  366             *

Richard A. Mandell                           780         *                       580                  200             *

Gerald P. McBride                          1,169         *                       869                  300             *

F. Gerald McGrath                          1,108         *                       866                  242             *

Thomas Monti                                 208         *                       185                   23             *

Harvey Morgan                                779         *                       580                  199             *

Takao Nakajima                               206         *                       139                   67             *

Donald G. Nelson                             216         *                       193                   23             *

Jeffrey T. Newton                            242         *                       216                   26             *

Leland B. Paton                            1,413         *                     1,159                  254             *

William J. Potter                            519         *                       417                  102             *

Malcolm M. Prine                             963         *                       757                  206             *

Paul J. Proscia                              363         *                       325                   38             *

Joseph E. Rechter                            554         *                       433                  121             *

David Reed                                   390         *                       348                   42             *

David F. Remington                         1,108         *                       866                  242             *

George N. Riordan                            649         *                       580                   69             *

William T. Rush, Jr.                         376         *                       290                   86             *

John A. Schneeberger                         277         *                       216                   61             *

</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                       SHARES BENEFICIALLY OWNED           COMMON STOCK       SHARES BENEFICIALLY OWNED AFTER
                                       PRIOR TO THE OFFERING (1)       OFFERED FOR SELLING            THE OFFERING (1)
                                       -------------------------           STOCKHOLDERS'              ----------------
NAME OF BENEFICIAL OWNER                  NUMBER      PERCENT               ACCOUNT(2)              NUMBER         PERCENT
- ------------------------                  ------      -------               ----------              ------         -------
<S>                                       <C>         <C>                   <C>                     <C>            <C>
Alexander C. Schwartz, Jr.                 2,559         *                     1,159                1,400             *

Robert J. Sherman                          1,298         *                     1,159                  139             *

Richard Sichenzio                          1,253         *                       974                  279             *

Francesco P. Sinatra                         389         *                       290                   99             *

Gary L. Singleterry                          330         *                       228                  102             *

Howard Sodokoff                              193         *                       155                   38             *

Sidney Spielvogel                            649         *                       580                   69             *

John S. Struck                               240         *                       189                   51             *

John Wei                                     389         *                       290                   99             *

David B. Wellborn                            299         *                       232                   67             *

John E. Welsh III                          5,043         *                     4,677                  366             *

John R. Whitman                            3,899         *                     2,898                1,001             *

Paul T. Wilkinson                            325         *                       290                   35             *

Robert W. Willard                          1,324         *                     1,159                  165             *

Guy P. Wyser-Pratte                          986         *                       881                  105             *
                                          ------       ---                    ------               ------           ---
TOTAL                                     97,007         *                    83,120               13,887             *

</TABLE>


          THE DATE OF THIS PROSPECTUS SUPPLEMENT IS OCTOBER 24, 1994.




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