Michaels Companies Inc. (NASDAQ: MIK) reported its fiscal fourth-quarter financial results before the markets opened on Thursday. The company said it had $0.87 in earnings per share (EPS) on $1.7 billion in revenue, which compares to consensus estimates from Thomson Reuters of $0.84 in EPS on revenue of $1.65 billion. In the same period of last year, the specialty retailer posted EPS of $0.75 and $1.61 billion in revenue.
Net sales increased 4.6%, or 6.4% on a constant currency basis, to $1.7 billion from $1.6 billion in the fourth quarter of fiscal 2014. Comparable store sales increased 3.1%, or 4.7% on a constant currency basis.
In terms of guidance for the first quarter, the company expects comparable sales growth in the range of 1.9% to 2.4%, or 2.8% to 3.3% on a constant currency basis, as well as EPS in the range of $0.34 to $0.36. The consensus estimates call for $0.38 in EPS on $1.13 billion in revenue.
During this quarter, the board of directors authorized the repurchase for an additional $200 million of its common stock.
The company had free cash flow of $380.1 million in fiscal 2015, compared to $304.2 million in fiscal 2014. On the books, the company ended the quarter with $409.4 million in cash and $2.8 billion in debt.
Chuck Rubin, chairman and CEO of Michaels, commented:
I am very pleased with our fourth quarter results. We improved our in-store shopping experience, increased our customer communications, offered a trend-right holiday assortment, and our customers responded. Our strong fourth quarter results helped drive our full year success. We delivered against each of the financial goals we established at the beginning of fiscal 2015, despite stronger than expected headwinds from foreign exchange rates. I want to thank all of our Team Members who stayed focused on our customers and our long-term strategy and delivered these record results.
Shares of Michaels closed Wednesday down 1.7% at $24.32, with a consensus analyst price target of $28.77 and a 52-week trading range of $19.46 to $30.00. Following the release of the earnings report, the stock was up 6.9% to $26.00 in early trading indications Thursday.
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