The Michaels Company (NASDAQ: MIK) on Thursday reported earnings for the first quarter of fiscal 2019 that were in line with expectations. Comparable store sales were down 2.9% for the quarter. However, the sales decreases were as expected for the Company. The decline in comparable stores sales was largely due to a decrease in customer transactions.
The Company reported a slow on net sales, decreasing from USD 1115.5 Million in the first quarter of fiscal 2018 to USD 1093.7 in the first quarter of fiscal 2019. The decrease in net sales was primarily due to the closing of two Michaels subsidiary stores; Pat Catan’s and the Aaron Brothers.
The Michaels Company is looking to combat slowing sales with the opening of multiple new stores and the relocation of several current stores. During the first quarter, Michaels opened 4 new stores, while closing only 2. The Company also relocated seven stores to new locations. The Company is planning to open two new Michaels stores and relocate one during the second quarter. As of the end of the first quarter of fiscal 2019, there are currently 1,260 Michaels stores in operation.
The Company expects net sales for fiscal 2019 to be between USD 5.19 Billion and USD 5.4 Billion.
“While our first quarter results were within our range of expectations for the quarter, we are not satisfied and are taking steps to improve our performance,” said Mark Cosby, Interim CEO. “Our team is focused on improving our current sales trend, executing against our key priorities to build momentum in the second half of fiscal 2019, and refreshing our long-term growth strategy to deliver stronger growth in 2020 and beyond.”