Michaels Companies Inc (NASDAQ: MIK) reported diluted earnings per share for the first quarter of fiscal 2018 of $0.15, or $0.39 per diluted share excluding approximately $0.20 per diluted share related to a one-time charge associated with the restructuring of the Aaron Brothers division and approximately $0.04 per diluted share from provisional adjustments related to the Tax Cuts and Jobs Act of 2017.
CEO Chuck Rubin said, "Our first quarter results were in-line with our expectations, and our team is executing well against our plans to make it easier for customers to bring their creativity to life.
"We continue to operate from a position of financial strength, as the industry leader with healthy operating margins, strong cash flows and high returns on invested capital, and we remain committed to leveraging these strengths to accelerate key initiatives in fiscal 2018 to drive future sales and earnings growth."
Net sales were $1,155.5 million compared to $1,158.6 million in the first quarter of fiscal 2017. The decrease in net sales was primarily due to the closure of all 94 full-size Aaron Brothers stores in the first quarter of fiscal 2018. Comparable store sales increased 0.4% (flat on a constant currency basis) due to an increase in average ticket, partially offset by a decrease in customer transactions.
During the quarter, the Company opened six new Michaels stores, closed one Michaels store, and relocated nine Michaels stores. At the end of the first quarter, the Company operated 1,243 Michaels stores, three Aaron Brothers stores and 36 Pat Catan’s stores.
Shares were drubbed $3.88, or 17.7%, to $18.05
