The Michaels Companies (MIK) reported earnings March 4th. Analysts expected revenue of $1.81 billion and EPS of $1.41. The revenue estimate implied mid-single-digit percentage growth Y/Y. Investors should focus on the following key items.

Top Line Growth

Traditional retailers have faced strong headwinds for years. As more consumers shop online, bricks and mortar operations have become less efficient. In some instances, traditional retailers have had to shutter physical locations and rely more on digital sales. Walmart (WMT) and Target (TGT) have embraced digital sales and have been extremely successful at competing against the Amazons (AMZN) of the world. Other retailers like Michaels have had to play catch up.

The pandemic practically forced retailers to embrace digital. In the first quarter of fiscal 2020, Michaels temporarily closed 900 of its 1,272 stores. The company reopened all stores in the following quarter; though the pandemic crimped sales, the company has rebounded nicely. Some of that success could be credited to CEO Ashley Buchanan, the former Chief Merchandising Officer at Walmart. Buchanan brought a wealth of knowledge in merchandising and e-Commerce to Michaels.

Apollo, Leon Black Finesses Michaels Shareholders Out Of Billions

Apollo and Leon Black agreed to buy Michaels for $22. This is highway robbery. Trump And The GE will discuss it live Thursday, March 18th at 7pm on Youtube.

Shocking The Street believes Michaels’ sum-of-the parts is worth $44. Another buyer could and should emerge. Read more:

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