The second quarter saw Michaels eke through comp and earnings gains but top a Wall Street earnings estimate.
In the quarter, Michaels posted net income of $24.5 million, or 16 cents per diluted share, versus $27.5 million, or 15 cents per diluted share, in the period a year earlier.
Net income adjusted to exclude one-time charges was $29.6 million, or 19 cents per diluted share, versus $26.4 million, or 15 cents per diluted share, in the year-prior quarter. Diluted earnings per share beat a Zacks Investment Research analyst consensus estimate of 14 cents.
Net sales were $1.03 billion versus $1.05 billion in the quarter a year before as a 0.3% increase in comparable sales and cash generated by 11 additional Michaels stores net of closures partially offset a revenue decrease associated primarily with the closure of the company’s Pat Catan’s stores in fiscal 2018, Michaels stated.
Operating income was $71.3 million versus $74.3 million in the year-previous quarter.
“We are pleased to return to positive comparable store sales in the second quarter of fiscal 2019,” said Mark Cosby, Michaels interim CEO. “Our teams are focused on driving sales and executing on our 2019 priorities, and the early results show the customer is responding positively. It is encouraging to see this early progress, and we are focused on the disciplined execution of our priorities to continue to build on this early momentum.”