Michaels Same-Store Sales Slip
December 06 2016 - 9:10AM
Dow Jones News
Michaels Cos. cut its guidance for the second straight quarter
as same-store sales for the arts-and-crafts retailer continued to
slip.
Aggressive discounting across the niche industry hurt sales all
year, even as Michaels has gained market share. Chief Executive
Chuck Rubin said that the company was "disappointed our plans did
not result in expected comp and earnings growth."
The company now expects adjusted earnings for the year to be
between $1.86 and $1.90, compared with prior guidance of $1.92 to
$1.98.
Same-store sales dipped 2% for the quarter, driven by less
traffic. For the fourth quarter, the retailer expects comparable
sales to be between flat and down 1.5%.
Overall for the quarter the Texas-based retailer reported a
profit of $76.5 million, or 37 cents a share, from $76.8 million,
or 37 cents, a year earlier. Excluding items such as nonrecurring
inventory adjustments and integration expenses, the company earned
40 cents a share.
Revenue climbed 5% to $1.23 billion due primarily to the
acquisition of Lamrite West earlier this year.
Analysts polled by Thomson Reuters had forecast earnings of 43
cents per share on $1.26 billion in revenue.
Shares closed at $24.31 and were inactive premarket. The stock
has risen 10% so far this year.
Write to Imani Moise at imani.moise@wsj.com
(END) Dow Jones Newswires
December 06, 2016 08:55 ET (13:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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