Michaels Earnings: MIK Stock Slides 15% Lower Despite Big Q2 Beat

Michaels (NASDAQ:MIK) earnings for the arts and crafts retailer’s second quarter of 2020 have MIK stock taking a beating on Thursday. That comes even after reporting adjusted earnings per share of 30 cents on revenue of $1.15 billion. Both of these are better than Wall Street’s adjusted losses per share and revenue estimates of 8 cents and $1.01 billion.

A Michael's (MIK) store with the name in red

Source: Joni Hanebutt / Shutterstock.com

Let’s take a deeper dive into the most recent Michaels earnings report below.

  • Adjusted per-share earnings are up 57.9% from 19 cents during the same time last year.
  • Revenue for the quarter is sitting 11.7% higher than the $1.03 billion reported in Q2 2019.
  • Operating income of $53.3 million is a 25.3% decline year-over-year from $71.3 million.
  • The Michaels earnings report also has net loss coming in at $7.8 million.
  • That’s a drop from the company’s net income of $24.5 million in the same period of the year prior.

Ashley Buchanan, CEO of Michael’s, said this about the earnings results.

“Michaels strong second quarter results are a testament to the solid execution of our team in an unprecedented environment. We saw strong demand and customer engagement across our stores, and the multiple omnichannel touchpoints we introduced over the past few months.”

Michaels isn’t providing guidance right now due to the novel coronavirus. Many other companies are also withholding outlooks at this time due to the pandemic.

MIK stock was down 15.4% as of Thursday afternoon.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Article printed from InvestorPlace Media, https://investorplace.com/2020/09/michaels-earnings-hammer-mik-stock/.

©2021 InvestorPlace Media, LLC