Michaels Companies Inc. (NASDAQ: MIK) shares rose by as much as 14.7 percent on Thursday after the company had reported in-line third quarter financial results for fiscal year 2017.
For the third quarter, Michaels reported net sales of $1.24 billion, increasing 1.1 percent year over year, but falling short of analysts’ estimates by $20 million. The company reported a diluted EPS of $0.44, increasing 18.9 percent year over year, and beating analysts’ estimates by $0.01.
Michaels says it lost approximately $10 million in sales due to Hurricane Harvey and Irma, but the in-line sales results resulted in a 1 percent increase in comparable store sales.
Michaels ended the third quarter with $176.8 million cash on hand, but still with a $2.9 billion in debt.
During the third quarter, the company repurchased 2.4 million shares or $48.6 million. The remaining authorization for future repurchases is approximately $350 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,” said Chuck Rubin, Chairman and Chief Executive Officer.
For the fourth quarter, Michaels is estimating comparable stores sales to increase 1.5 percent to 2.5 percent. The company expects a diluted EPS in between $1.15 and $1.18.
“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," added Rubin, “We are excited about our plans, and we are confident the investments we've made to create an easier, more integrated omnichannel experience will drive continued momentum and deliver stronger financial results."