Michaels Cos. (MIK) Tops Q2 EPS by 3c, Comps Increase 0.6%

Michaels Cos. (NASDAQ: MIK) reported Q2 EPS of $0.19, $0.03 better than the analyst estimate of $0.16. Revenue for the quarter came in at $1.07 billion versus the consensus estimate of $1.06 billion.

Comparable store sales increased 0.6%, or 0.8% on a constant currency basi

GUIDANCE:

Michaels Cos. sees Q3 2017 EPS of $0.41-$0.43, versus the consensus of $0.42.

• comparable store sales to increase 1.2% to 2.2%;
• to open nine new Michaels stores, open one new Pat Catan’s store, relocate five Michaels stores, and close four Aaron Brothers stores;
• operating income to be between $150 million and $155 million;
• interest expense to be approximately $34 million;
• the effective tax rate to be between 34% and 35%; and
• diluted earnings per common share to be between $0.41 and $0.43, based on diluted weighted average common shares of 184 million.

For fiscal 2017, a 53-week year, the Company expects:

• total net sales growth of 2.8% to 3.8%, including the impact of the 53rd week, which is planned to be approximately $80 million;
• comparable store sales to increase 0.5% to 1.5%;
• to open 18 new stores, including 17 new Michaels stores and one new Pat Catan’s store; relocate 13 Michaels stores; and close 14 Aaron Brothers stores;
• operating income to be in the range of $735 million to $750 million;
• interest expense to be approximately $131 million;
• the effective tax rate to be between 34% and 35%;
• diluted earnings per common share to be between $2.11 and $2.16, based on (**Cosenssus $2.08)
• diluted weighted average common shares of approximately 187 million; and
• capital expenditures to be between $125 million and $135 million.

For earnings history and earnings-related data on Michaels Cos. (MIK) click here.

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