Irving, Texas – The Michaels Companies Inc. on Wednesday reported a net loss of $48 million in the second quarter of fiscal 2014, compared to net income of $17 million in the year-ago period, as $68 million in costs associated with debt-extinguishment and drove the retailer into the red. Its results, however, beat analysts estimates, and the company raised its full-year outlook. It was Michaels’ first earnings report since it went public again at the end of June.
Net sales for the quarter, ended Aug. 2, increased a better-than-expected 4.9% to $948 million, from $904 million last year. Same-store sales increased by 3.2%.
The retailer plans to open 21 new Michaels stores in the second half of 2014, and expects total annual sales growth of 1% to 2% for the fiscal year.
“We are in the implementation phase of our multi-year strategic plan which is designed to not only improve the experience of our core enthusiast shopper but also to attract the under-served novice customer to Michaels, enabling us to further extend our leadership position within the fragmented arts and crafts industry," Chuck Rubin, CEO, said. "We enter the back half of 2014 confident in our business, our outlook and our initiatives.