The Michaels Company, Inc., the largest specialty craft and art retailer in the US, has announced their second quarter fiscal 2020 results.
Micheals’ numbers reflect a strong quarter, surpassing sales estimates. The following financial results were featured in the retailer’s press release, showing prominent customer engagement and steady demand:
- Net sales increase of 11.1% to $1.148 billion
- Comparable store sales increase of 12%
- Operating income at $53.3 million, adjusted operating income increase of 40.7% to $105.8 million
- Free cash flow of $331 million, liquidity of approximately $1.3 billion, inclusive of $651 million in cash
“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. Looking ahead, we will continue to focus on serving our customers and executing to the pillars that underpin our Maker strategy: strengthening our retail foundation, modernizing our omnichannel experience and establishing our position as the Expert for the Maker,” said Ashley Buchanan, Chief Executive Officer at Micheals.
The retailer’s successful quarter has given them confidence in their ability to navigate these unprecedented times, while allowing them to create a plan for long-term growth.
Shortly after releasing their second quarter results, Michaels announced their plans to hire over 16,000 seasonal positions across the US for the 2020 holiday season. The retailer is preparing for a significant increase in traffic and sales during this time. In order to continue to provide an exceptional level of customer service, they will need to grow their employee count across all locations. The Michaels team strives to create a meaningful and bright holiday season, with the help of their store employees and wide assortment of seasonal products.
“At Michaels, we’re committed to helping everyone stay creative and safe. Our team members are vital to helping our Makers bring a little extra joy home during the upcoming holiday season. We are proud to employ such creative and passionate team members and are dedicated to making Michaels a fun and supportive place to work. Each holiday season, we are pleased to add additional talent to our growing team and we look forward to safely providing another exceptional holiday shopping experience to our Maker community this year,” said Rob Koch, Executive Vice President of Stores and Real Estate for Michaels.
Source: Michaels Q2 – Press Release 9/3/20, Micheals Holiday Hires – Press Release 9/8/20
Photo Credit: Michaels – Freight Waves
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About The Michaels Companies, Inc.
The Michaels Companies, Inc. is North America’s largest specialty provider of arts, crafts, framing, floral, wall décor, and seasonal merchandise for Makers and do-it-yourself home decorators. The Company operates more than 1,270 Michaels stores in 49 states and Canada. Additionally, the Company serves customers through a variety of digital platforms including Michaels.com, Canada.michaels.com, consumercrafts.com and aaronbrothers.com. The Michaels Companies, Inc., also owns Artistree, a manufacturer of high-quality custom and specialty framing merchandise. For a list of store locations or to shop online, visit www.michaels.com or download the Michaels app.
