=Michaels Stores (MIK) reported earnings on Thur 30 Nov 2017 (b/o)

Michaels Stores beats by $0.01, misses on revs; guides Q4 EPS in-line 

• Reports Q3 (Oct) earnings of $0.44 per share, $0.01 better thanthe Capital IQ Consensus of $0.43; revenues rose 1.1% year/year to $1.24 bln vs the $1.26 bln Capital IQ Consensus inclusive of an estimated $10 million in lost sales related to Hurricanes Harvey and Irma. The increase in net sales was primarily a result of a 1.0% increase in comparable store sales (0.5% on a constant currency basis), and sales from the operation of 16 new Michaels stores (net of closures) in fiscal 2017. As expected, this increase was partially offset by lower wholesale revenues. Gross profit increased 3.8% to $484.1 million, from $466.6 million in the third quarter of fiscal 2016. As a percentage of net sales, gross profit increased 100 basis points to 39.0%
• Co issues in-line guidance for Q4, sees EPS of $1.15-1.18 vs. $1.16 Capital IQ Consensus; comparable store sales to increase 1.5% to 2.5%, or 1.0% to 2.0% on a constant currency basis; to open one new Michaels store and close four Aaron Brothers stores; operating income to be between $354 million and $364 million.
• "We are pleased we delivered third quarter operating income in-line with our guidance and diluted EPS above our guidance. We are seeing nice momentum in our business, excluding the disruption from the hurricanes, and we are encouraged by the customer's response to the improvements we have made, both in-stores and online, to make it easier for customers to MAKE," said Chuck Rubin, Chairman and Chief Executive Officer. "As we turn to the fourth quarter, we believe our holiday assortment is bigger and better than ever, and our teams are ready to serve customers, both in stores and online. We are pleased with the start to the quarter, although we recognize the heart of the season still lies ahead."