=Michaels Stores (MIK) reported earnings on Tue 6 June 2017 (b/o)

Michaels Stores misses by $0.01, reports revs in-line; comps -1.2%; guides Q2 EPS below consensus; narrows full year guidance :

• Reports Q1 (Apr) earnings of $0.38 per share, $0.01 worse than the Capital IQ Consensus of $0.39; revenues were unchanged from the year-ago period at $1.16 bln.
  • Comparable store sales decreased 1.2% driven by a decrease in average ticket. 
• Co issues downside guidance for Q2, sees EPS of $0.15-0.17 vs. $0.19 Capital IQ Consensus Estimate. Sees comparable store sales down 0.5% to 1.5%, or be approximately flat to down 1.0% on a constant currency basis;
• Co narrows guidance for FY17, sees EPS of $2.03-2.15 vs. $2.12 Capital IQ Consensus Estimate. Sees total net sales growth of 2.2% to 3.7%, or 2.5% to 4.0% on a constant currency basis, including the impact of the 53rd week, which is planned to be approximately $80 million;
  • Comparable store sales to be down 0.2% to up 1.3%, or flat to up 1.5% on a constant currency basis;
• "Our operational expectations for the remainder of 2017 have not changed. We continue to believe that top-line trends will improve in the second half as we anniversary the 2016 coloring headwind, disruption created from store layout changes made in the third quarter last year, and the U.S. elections. However, the value of the Canadian dollar has weakened since we established our prior outlook, and we have adjusted our fiscal 2017 full year guidance to reflect our expectation this currency trend continues,"