Michaels Companies, Inc. (NASDAQ: MIK) fell short early trading day on Tuesday, as earnings reported less than analyst estimates. According to their press release, Michaels reported a net sales of $1.16M, a decrease of 1.2% from Q1 2016. Operating Income dropped from $145M in Q1 2016 to $139M in Q1 of 2017 or a 4.2% difference. Comprehensive income has also seen a reduction from $85M in Q1 2016 to $67M in Q1 2017. Diluted EPS did however reported a gain of 11.4%, which translates to $.38 EPS up from $0.34 EPS in Q1 of 2016.
It appears that a plethora of independent variables occurred throughout 2016 which has in turn negatively impacted the company’s earnings, in addition to updating their fiscal 2017 Guidance, in lieu of the weak Canadian dollar.
Chuck Rubin, the Chairman and CEO of Michaels states the following on the matter, “Our operational expectations for the remainder of 2017 have not changed. We continue to believe that top-line trends will improve in the second half as we anniversary the 2016 coloring headwind, disruption created from store layout changes made in the third quarter last year, and the U.S. elections. However, the value of the Canadian dollar has weakened since we established our prior outlook, and we have adjusted our fiscal 2017 full year guidance to reflect our expectation this currency trend continues.”
Michaels is known for their weekly sales on a variety of craft goods.
The Michaels Companies, Inc. is North America's largest specialty provider of arts, crafts, framing, floral, wall décor, and seasonal merchandise for the hobbyist and do-it-yourself home decorator. As of April 29, 2017, the Company owned and operated 1,364 stores in 49 states and Canada under the brands Michaels, Aaron Brothers, and Pat Catan's. The Michaels Companies, Inc., also owns Artistree, a manufacturer of high quality custom and specialty framing merchandise, and Darice, a premier wholesale distributor in the craft, gift and decor industry. The Michaels Companies, Inc. produces a number of private brands including Recollections®, Studio Decor®, Bead Landing®, Creatology®, Ashland®, Celebrate It®, ArtMinds®, Artist's Loft®, Craft Smart®, Loops & Threads®, Make Market®, Foamies®, LockerLookz®, Imagin8®, and Sticky Sticks®