Michaels Companies Results Miss Expectations, Provides Downbeat Outlook

Michaels Companies Inc. reported Tuesday a fiscal first-quarter profit of $66.9 million, or 38 cents a share, compared with a profit of $85.0 million, or 34 cents a share, in the same period a year ago. That missed the FactSet consensus for earnings per share of 39 cents. The arts and crafts retailer said revenue was $1.16 billion, in line with year-earlier revenue, but just shy of the FactSet consensus of $1.17 billion. Same-store sales fell 1.2%, driven by a decrease in the average ticket, to miss the FactSet consensus of a 0.6% decline. Looking ahead, the company cut its 2017 same-store sales outlook to be down 0.2% to up 1.3% from previous guidance of flat to up 1.5%. For the second-quarter, same-store sales are expected to be down 0.5% to 1.5% and EPS is expected to be between 15 cents to 17 cents, compared with the FactSet consensus for same-store sales of up 0.2% and for EPS of 19 cents. The stock, which was still inactive in premarket trade, has lost 3% year to date, while the SPDR S&P Retail ETF has dropped 6.3% and the S&P 500 has gained 8.8%.