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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