=Michaels Stores (MIK) reported earnings on Tue 7 March 17 (b/o)

Michaels Stores beats by $0.01, reports revs in-line; guides Q1 EPS in-line; guides FY17 EPS above consensus:

• Reports Q4 (Jan) earnings of $0.96 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.95; revenues rose 4.1% year/year to $1.75 bln vs the $1.76 bln Capital IQ Consensus.
  • Comparable store sales decreased 1.0% driven by a decrease in customer transactions, which was partially offset by an increase in average ticket.
  • As a percentage of net sales, gross profit was 40.3% compared to 40.9% in the fourth quarter of fiscal 2015. The decrease, as a percentage of net sales, was due to promotional investments; the acquisition of Lamrite West, which has a lower gross margin rate than the Michaels business; and $1.1 million of non-recurring, inventory-related purchase accounting adjustments.
• Co issues in-line guidance for Q1, sees EPS of $0.38-0.40 vs. $0.39 Capital IQ Consensus Estimate.
  • Comparable store sales growth expected to be flat to down 1%;
• Co issues upside guidance for FY17, sees EPS of $2.05-2.17 vs. $2.04 Capital IQ Consensus Estimate; sees FY17 revs up 2.5% to 4.0%, including the impact of the 53rd week, which is planned to be approximately $80 million; equates to roughly $5.33-5.41 bln vs. $5.44 bln Capital IQ Consensus Estimate.
  • Comparable store sales expected to be flat to up 1.5%.