Michaels Cos. beats Q2 estimates amid surging online sales
The Michaels Companies reported a better-than-expected second quarter as online sales skyrocketed and customers returned to its stores.
The arts and crafts retailer’s sales rose 11.1% to $1.148 billion in the quarter ended Aug.1, well ahead of the $1.006 billion the Street expected. Comparable sales rose 12%, driven by strong demand online and in stores, all of which had reopened by the beginning of July. Online sales were up more than 350% from a year ago.
Michaels posted a net loss of $7.8 million, or $0.5 a share, in the quarter ended Aug. 1, compared to income of $24.5 million, or $0.16 a share, in the year-earlier period. Adjusted per-share earnings came to $0.30 cents easily topping the $0.08 loss-per-share analysts expected.
The company ended the quarter with $1.3 billion in liquidity, which was approximately $100 million higher than at the start of the fiscal year.
“This gives us great confidence in our ability to navigate the current environment while advancing our strategic priorities and positioning Michaels for long-term growth,” said Buchanan.