Michaels reports third-quarter sales up 15%

The Michaels Companies, Inc. announced a third-quarter fiscal 2020 net sales increase of 15.1% to $1.406 billion; comparable store sales increase of 16.3%; including e-commerce growth of 128.0%.

“Michaels delivered strong third-quarter results highlighted by comparable-store sales growth of 16.3%, which was driven by robust consumer demand, improved retail execution and continued progress against our strategic initiatives,” said Ashley Buchanan, CEO, Michaels. “Our expanded omnichannel capabilities, Maker-centric branding, and increasingly personalized marketing resonated well with customers. We also benefited from progress we made on our ongoing efforts around strategic inventory management, streamlined store operations and a disciplined approach to pricing and promotions. Importantly, we strengthened our balance sheet by paying down $150 million in debt and increased our financial flexibility by refinancing and significantly extending the maturity of our term loan.”

13 Weeks Ended
October 31, 2020

13 Weeks Ended
November 2, 2019

39 Weeks Ended
October 31, 2020

39 Weeks Ended
November 2, 2019

Net Sales

$1,406.2M

$1,222.0M

$3,354.3M

$3,349.4M

Comp. Store Sales

16.3%

(2.2%)

0.6%

(1.7%)

Operating Income

$199.0M

$76.0M

$191.5M

$240.1M

Net Income

$111.1M

$28.7M

$39.9M

$90.9M

Diluted Earnings per Share

$0.74

$0.19

$0.27

$0.58

Adjusted Operating Income1

$201.6M

$117.4M

$246.6M

$294.0M

Adjusted Net Income 1

$129.3M

$60.1M

$97.7M

$138.7M

Adjusted Diluted Earnings per Share1

$0.86

$0.40

$0.66

$0.89

See additional information in this release for a reconciliation of non-GAAP financial measures to the respective GAAP measures.