Michaels adjusted net income and comparable sales both slipped in the fourth quarter, although the company met a Wall Street earnings estimate.
Net income for the quarter was $181.7 million or $1.24 per diluted share, versus $181.4 million, or $1.15 per diluted share, in the year-previous period. Adjusted for one-time events, net income was $185.1 million, or $1.26 per diluted share, versus $227.1 million, or $1.44 per diluted share, in the year-before quarter. Michaels adjusted diluted earnings per share matched a MarketBeat-published analyst consensus estimate.
Fourth quarter comparable store sales decreased 2.4% versus the year past period. Net sales slipped 3.7% in the period year over year to $1.72 billion. Lower comparable store sales, the closure of the company’s Pat Catan’s stores during the fiscal 2018 fourth quarter and a decrease in wholesale revenue drove the sales decline, which was partially offset by revenue of 16 additional Michaels stores net of closures open in the 2019 fiscal year.
For the full fiscal year, net income was $272.6 million, or $1.78 per diluted share, versus $319.5 million, or $1.86 per diluted share, in the year previous. Adjusted net income was $323.8 million, or $2.11 per diluted share, versus $404.2 million, or $2.35 per diluted share, in the year before.
Comps decreased 1.9% versus the year. Net sales slipped 3.8% to $5.07 billion year over year. Operating income was $515 million versus $563.6 million in fiscal 2018.
“Our fourth quarter results were consistent with our expectations, reflecting underlying business trends and the anticipated headwinds of a shorter holiday selling season. This was partially offset by improvements to our execution on seasonal transitions and events during the fourth quarter. We also made strong progress on the implementation of our ‘Maker’ strategy, which provides a clear roadmap for future growth,” said Mark Cosby, Michaels CEO.