Michaels boosted its net income in a solid third quarter driven by comparable store sales gains.
The company recorded total net income of $86.8 million, or 50 cents per diluted share, versus $75.3 million, or 44 cents per diluted share, in the year-earlier period. Adjusted for one-time charges, net income was $79.8 million, or 48 cents per diluted share, versus $79.8 million, or 44 cents per diluted share, in the year-prior quarter.
Adjusted earnings per diluted share beat a Yahoo Finance-published analyst consensus estimate by four cents.
Net sales in the quarter advanced 2.7% to $1.27 billion from the year-before period, primarily due to a 3.8% increase in comparable store sales, and revenue from 19 additional Michaels stores as compared with the year-previous period. The sales gain was partially offset by the effect from the closure of all 94 of the company’s full-size Aaron Brothers stores, which occurred in this fiscal year’s first quarter.
Operating income was $137.2 million versus $153.9 million in the 2017 third quarter.
“Today, we reported better-than-expected third quarter results, driven by stronger comparable store sales growth, good expense management and the impact of our ongoing share repurchase program,” said Chuck Rubin, Michaels chairman and CEO. “Supported by a compelling assortment, stronger marketing and a more integrated omnichannel experience, our teams are engaged and excited to serve customers this holiday season, both in stores and online. We have invested significantly this year to create an easier shopping experience for customers, and we believe these improvements will strengthen our leadership position in the arts and crafts industry, and help us deliver our revenue and earnings expectations for the year.”