Retailer Michaels stock tumbles after same-store sales and outlook miss

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Shares of Michaels Companies Inc.
MIK, +0.87%
tumbled 16% in premarket trade Thursday, after the arts and crafts retailer beat fiscal first-quarter profit expectations, but missed on same-store sales and provided a downbeat outlook. Net income for the quarter to May 5 fell to $26.9 million, or 15 cents a share, from $72.2 million, or 38 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 39 cents, above the FactSet consensus of 38 cents. Revenue slipped to $1.156 billion from $1.159 billion, but just topped the FactSet consensus of $1.151 billion, but same-store sales growth of 0.4% missed expectation of a 0.7% rise. Looking ahead, the company said it expects second-quarter same-store sales to be about flat, compared with the FactSet consensus for a 0.7% rise. The stock had lost 9.3% year to date through Wednesday, while the SPDR S&P Retail ETF
XRT, -1.23%
had climbed 9.9% and the S&P 500
SPX, -0.40%
had gained 3.8%.


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