The arts and crafts retailer Michaels Stores announced its earning of fiscal 3rd quarter as its revenue missed analysts’ outlook. The company posted an unforeseen drop in same-store sales.
Michaels Stores said its same-store sales dropped 2.0%, citing massive plunge in customer transactions, which was somewhat counterbalance by a surge in average ticket. Analysts though were expecting comparable-store sales growth of 1.3%.
Meanwhile in the last three month period adjusted earnings of 40 cents per weakened share dropped short of analysts’ estimations of 43 cents per share. Revenue surged 5% to $1.23 billion from last year, but was also less than analysts’ prospects of $1.26 billion.
Furthermore The Irving, Texas-based retailer also offered downbeat outlook for the holiday quarter and cut its full-year guidance.
Looking ahead in the fiscal fourth quarter, Michaels forecasts adjusted earnings per diluted share between 94 cents and 98 cents, while analysts are expecting earnings of 99 cents per share. Comparable-store sales are predicted to be in the range of flat to down 1.5%, compared to analysts’ forecasts for growth of 1.9%.
Moreover Company’s full-year adjusted earnings per diluted share are now estimated to fall between $1.86 and $1.90, less than the company’s prior expectations for earnings of $1.92 to $1.98 per share, and below Wall Street’s prediction of $1.94 per share.
Michaels Stores Chief Executive Chuck Rubin said in a statement that the company was “disappointed our plans did not result in expected comp and earnings growth.”