Michael Stores Profit, Sales Beat Estimates, Outlook Falls Short

Arts and crafts retailer The Michaels Cos. said Thursday it had net income of $157 million, or 75 cents a share, in the fourth quarter, up from $133 million, or 74 cents a share, in the year-earlier period. Adjusted per-share earnings came to 75 cents, a penny ahead of the FactSet consensus of 74 cents. Sales rose 3.4% to $1.61 billion, also ahead of the FactSet consensus of $1.598 billion. The company said it is now expecting fiscal 2015 sales growth of 3.2% to 3.7% and EPS of $1.65 to $1.71, compared with a FactSet consensus of $1.72. For the first quarter, it expects EPS of 31 cents to 33 cents, compared with the FactSet consensus of 35 cents. Shares were not yet active in premarket trade, but have gained 19.7% in the last three months, while the S&P 500 has gained 1.4%.