Michaels Q1 earnings top Street; outlook disappoints
The Michaels Companies Inc. beat first-quarter profit expectations, but missed on same-store sales and provided a downbeat second-quarter outlook.
The arts and crafts retailer’s net income fell to $26.9 million, or 15 cents a share, for the quarter ended May 5, from $72.2 million, or 38 cents a share, in the year-ago period. Adjusted earnings per share came to 39 cents, just above analysts’ estimates 38 cents.
Revenue inched down to $1.156 billion from $1.159 billion, beating estimates of $1.151 billion. Same-store sales edged up 0.4%, less than expected, with an increase in the average amount of a transaction partially offset by a decrease in customer transactions.
The company said it expects second-quarter same-store sales to be about flat, compared with Street forecasts of a 0.7% rise.
It expects to see EPS in the range of $0.12 to $0.14, compared to estimates calling for $0.19 per share.
Michaels owns and operates more than 1,200 stores in 49 states and Canada under the Michaels, Aaron Brothers and Pat Catan’s banners.
The arts and crafts retailer’s net income fell to $26.9 million, or 15 cents a share, for the quarter ended May 5, from $72.2 million, or 38 cents a share, in the year-ago period. Adjusted earnings per share came to 39 cents, just above analysts’ estimates 38 cents.
Revenue inched down to $1.156 billion from $1.159 billion, beating estimates of $1.151 billion. Same-store sales edged up 0.4%, less than expected, with an increase in the average amount of a transaction partially offset by a decrease in customer transactions.
The company said it expects second-quarter same-store sales to be about flat, compared with Street forecasts of a 0.7% rise.
It expects to see EPS in the range of $0.12 to $0.14, compared to estimates calling for $0.19 per share.
Michaels owns and operates more than 1,200 stores in 49 states and Canada under the Michaels, Aaron Brothers and Pat Catan’s banners.