Michaels Companies Inc. (NASDAQ: MIK) released its fiscal second-quarter financial results before the markets opened on Wednesday. The arts and crafts retailer said that it had $0.19 in earnings per share (EPS) and $1.03 billion in revenue, which compares with consensus estimates of $0.14 in EPS and $1.02 billion in revenue. In the same period of last year, Michaels said it had EPS of $0.15 on $1.05 billion in revenue.

For the latest quarter, net sales dipped about 2% year over year. The decrease in net sales was primarily due to the closure of the Pat Catan’s stores in fiscal 2018, partially offset by a 0.3% increase in comparable store sales and sales from the operation of 11 additional Michaels stores (net of closures) during the quarter.

Gross profit was 35.5% of net sales in the quarter compared to 35.4% in the second quarter of fiscal 2018. The 10 basis point increase was primarily due to benefits from our ongoing pricing and sourcing initiatives and improved occupancy cost leverage.

Looking ahead to the fiscal third quarter, the company expects to see EPS of $0.46 to $0.51 with comparable sales growth in the range of flat to 1.0%. Consensus estimates call for $0.47 in EPS and $1.25 billion in revenue for the quarter.

Mark Cosby, interim CEO, commented:

We are pleased to return to positive comparable store sales in the second quarter of fiscal 2019. 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.

Shares of Michaels traded up about 19% on Wednesday to $5.60, in a 52-week range of $4.96 to $18.04. The consensus price target is $9.90.

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