Michaels Companies Inc. (NASDAQ: MIK) released its fiscal second-quarter earnings report before the markets opened on Thursday. This arts and crafts store is one of a few retailers on Thursday that’s bucking the ongoing downtrend in retail. Other companies fighting back against a slow 2017 include Signet Jewelers, Abercrombie & Fitch and Dollar Tree.
As for Michaels, the firm said that it had $0.19 in earnings per share (EPS) and $1.07 billion in revenue, compared with consensus estimates from Thomson Reuters of $0.16 in EPS on revenue of $1.06 billion. In the same period of last year, the specialty retailer said it had EPS of $0.17 and $1.06 billion in revenue.
During the quarter, the company opened five new Michaels stores and closed three Aaron Brothers stores.
In terms of the outlook for the fiscal third quarter, management believes that EPS will fall in the range of $0.41 to $0.43 and comparable store sales will increase between 1.2% and 2.2%. The consensus estimates call for $0.42 in EPS and $1.26 billion in revenue.
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On the books, Michaels cash and cash equivalents totaled $134.1 million at the end of the quarter, down from $298.8 million at the end of the previous fiscal year.
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Chuck Rubin, board chair and chief executive of Michaels, commented:
Today, we reported record second quarter sales and earnings per share results which were above our initial guidance. Our efforts to create a more experiential, omnichannel shopping experience, improve our value perception, and leverage our customer analytics are gaining traction earlier than we initially expected. As we begin the second half of the year, we believe these efforts will continue to deliver profitable growth and enable us to further expand our leadership in the arts and crafts channel.
Shares of Michaels were last seen up more than 12% at $22.01, with a consensus analyst price target of $24.00 and a 52-week range of $17.25 to $25.89.
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