Michaels raises $472 million in IPO
Irving, Texas — Michaels Cos. has raised $472 million in an initial public offering. The arts-and-crafts retailer priced 27.8 million shares at $17 each, which was at the low end of its predicted range. It plans to use the IPO’s proceeds to pay down its debt.
The chain, which operates stores under its namesake banner and Aaron Brothers, could raise up to $543 million if underwriters use their option to buy additional shares.
The stock was expected to start trading Friday on the Nasdaq under the symbol "MIK."
Finish Line delivers in first quarter
The Finish Line is off to a strong start in fiscal 2015, according to chairman and CEO Glenn Lyon, who credited the company’s omnichannel efforts for its first-quarter success.
The company reported consolidated net sales of $406.5 million, an increase of 15.8% over the prior year period. Comparable store sales increased 5%.
“The integration of our store and digital operations is allowing us to deliver great product and service to consumers in a seamless fashion no matter what channel they choose to shop,” said Lyon. “At the same time, we are reaching new consumers and expanding market share through our growing relationship with Macy’s. We are confident that our multidivisional, omnichannel strategies will strengthen our market position and drive growth in sales and earnings, allowing us to return increased value to our shareholders in the years ahead.”
Looking ahead, the company still expects Finish Line comparable-store sales to be up by mid-single digits and earnings per share to increase in the high single to low double digit range over fiscal year 2014 non-GAAP diluted earnings per share of $1.66.
The Finish Line has approximately 900 stores, including more than 260 shops in Macy’s in malls across the U.S. The company also operates the Running Specialty Group. This includes 58 specialty running shops in 12 states and the District of Columbia under The Running Company, Run On!, Blue Mile, Boulder Running Company, Roncker’s Running Spot, Running Fit and VA Runner banners.
Survey: Consumers want to initiate social media interaction
Jeffersonville, Ind. – Almost three-quarters (72%) of consumers only want to socially interact with a brand when they first comment on social media channels. Findings from a new customer survey from Accent Marketing Services LLC also show that 75% of Millennials find it helpful when other customers/followers respond to a question or comment posted on a brand’s social media channel, compared to 55% of Baby Boomers.
In addition, 82% of consumers use Facebook to speak with a customer service representative and two-thirds of consumers use Facebook to find good deals and promotions, including 80% of Baby Boomers. More men (34%) than women (25%) use Twitter to speak to a brand they have purchased a product from.
“Consumers behave differently across channels and if brands are going to create engagement that drives customer loyalty and builds brand advocates, it’s increasingly important for CMOs to understand their customers’ behavior on varying channels,” said David Norton, executive VP customer analytics and insights at MDC Partners and Chairman Accent Marketing Services. “To be a part of the conversation, CMOs need to have a social strategy in place to build a trusted relationship with their consumers and within their social community, ultimately creating a lifetime of engagement on social channels and in person.”