The good financial news continues for The Michaels Companies with strong results for the last quarter of fiscal 2020.
The specialty arts and crafts retailer, which just entered into a $3.3 billion deal with private equity firm Apollo Global Management Inc. to take the chain private, reported net sales of $1.9 billion for Q4 2020, up 12% year-over-year from $1.72 billion and $90 million ahead of analyst predictions. Net income rose 40% to $255.1 million from $181.7 million.
Adjusted earnings per share (EPS) of $1.69 beat the prior year Q4 by $.43 and Wall Street projections by $0.23. Same-store sales climbed 12.9%. For the full year, net sales rose 4% to $5.27 billion from $5.07 billion. Net income increased 8% to $294.9 billion from $272.6 billion. Adjusted EPS grew $0.22 to $2.33, while same-store sales improved by 4.8%.
Given the recent purchase agreement with Apollo, Michaels did not offer commentary on its results or forecast future results.