Exhibit 99.1


The Michaels Companies Announces Fourth Quarter and Full Year Fiscal 2019 Results

IRVING, Texas--(BUSINESS WIRE)--March 17, 2020--The Michaels Companies, Inc. (NASDAQ: MIK) today announced financial results for the fourth quarter and full year fiscal 2019 ended February 1, 2020.

“Our fourth quarter results were consistent with our expectations, reflecting underlying business trends and the anticipated headwinds of a shorter holiday selling season. This was partially offset by improvements to our execution on seasonal transitions and events during the fourth quarter. We also made strong progress on the implementation of our ‘Maker’ strategy, which provides a clear roadmap for future growth,” said Mark Cosby, Chief Executive Officer. “Looking ahead, I am confident in Ashley’s leadership as he and the entire team work to position Michaels to deliver sustainable growth and profitability over time.”

Cosby continued, “We are closely monitoring the rapidly changing developments from the Coronavirus outbreak, and Ashley is leading the efforts of our crisis team. The safety of our customers and our employees is our top priority during this challenging time. We are also assessing the potential impact on our business and, at this time, do not anticipate material supply chain disruptions during our first quarter. On the demand side, we have seen some evidence of slowing sales in certain categories and slightly increased conversion in our ecommerce business over the past few days. These are early observations and we will have more information as events unfold. In the meantime, we believe we have ample liquidity and considerable financial flexibility to navigate this uncertainty and position Michaels for future success.”

Ashley Buchanan, Chief Executive Officer Designate, said, “Since joining Michaels in early January, I have focused on the areas where we can improve our execution, as well as the key initiatives that will drive us forward. There is more work to do, and I am committed to taking the necessary actions to improve both our operations as well as our customer experience. The path ahead will likely not be linear, but I am confident that the successful execution of our ‘Maker’ strategy will best position Michaels for sales growth, enhanced profitability and free cash flow generation in the future.”

Key Financial Results:

 

13 Weeks Ended
February 1, 2020

13 Weeks Ended
February 2, 2019

Growth

52 Weeks Ended
February 1, 2020

52 Weeks Ended
February 2, 2019

Growth

Net Sales

$1,722.6M

$1,789.1M

-3.7%

$5,072.0M

$5,271.9M

-3.8%

Comp. Store Sales

-2.4%

-0.4%

 

-1.9%

+0.8%

 

Operating Income

$275.0M

$273.2M

0.6%

$515.0M

$563.6M

-8.6%

Net Income

$181.7M

$181.4M

0.1%

$272.6M

$319.5M

-14.7%

EPS (diluted)

$1.24

$1.15

7.8%

$1.78

$1.86

-4.3%

Adjusted Operating Income1

$278.6M

$333.2M

-16.4%

$572.6M

$671.7M

-14.7%

Adjusted Net Income1

$185.1M

$227.1M

-18.5%

$323.8M

$404.2M

-19.9%

Adjusted EPS1 (diluted)

$1.26

$1.44

-12.5%

$2.11

$2.35

-10.2%


1 See additional information in this release for a reconciliation of non-GAAP financial measures to the respective GAAP measures.

Fourth Quarter Fiscal 2019:

  • The decline in sales for the fourth quarter of fiscal 2019 compared to the prior year period is due to lower comparable store sales, the closure of our Pat Catan’s stores during the fourth quarter of fiscal 2018, and a decrease in wholesale revenue. This was partially offset by sales related to 16 additional Michaels stores (net of closures) since the end of the fourth quarter of fiscal 2018.
  • At the end of the fourth quarter of fiscal 2019, the Company operated 1,274 Michaels stores.
  • Operating income was $275.0 million compared to $273.2 million in the fourth quarter of fiscal 2018. Adjusted operating income for the fourth quarter of fiscal 2019 was $278.6 million compared to $333.2 million in the fourth quarter of fiscal 2018. A full reconciliation of Adjusted operating income is available within the tables of this press release.

Full Year Fiscal 2019:

  • The decrease in net sales was primarily due to the closure of our Pat Catan’s and Aaron Brothers stores during fiscal 2018, lower comparable store sales and a decrease in wholesale revenue. The decrease in net sales was partially offset by the operation of 16 additional Michaels stores (net of closures) during fiscal 2019.
  • Operating income was $515.0 million compared to $563.6 million for the full-year fiscal 2018. Adjusted operating income for fiscal 2019 was $572.6 million compared to $671.7 million in fiscal 2018. A full reconciliation of Adjusted operating income is available within the tables of this press release.
  • During fiscal 2019, the Company repurchased 11.6 million shares, or $105.1 million, under its share repurchase authorization. The total remaining authorization for future repurchases is approximately $293.5 million.
  • During fiscal 2019, the Company reported cash flows from operations of $493 million, and free cash flow, defined as cash flows from operations less capital expenditures, of $373 million.
  • The Company ended fiscal 2019 with a cash balance of $410 million and considerable borrowing capacity remaining under its revolving credit facility.

Outlook:

In light of the rapidly changing developments arising from the Coronavirus outbreak, the Company is not providing a formal full year outlook for Fiscal Year 2020 at this time. We are, however, providing a baseline outlook for the first quarter that excludes any potential impact from the Coronavirus outbreak.

For the first quarter of fiscal 2020, and prior to any impact from the Coronavirus situation, the Company expected:

  • Net sales to be between $1.08 billion and $1.10 billion
  • Comparable store sales to be in the range of -1.5% to 0.0%
  • Adjusted operating income to be between $74 million and $82 million
  • Before considering potential impacts to our business from the Coronavirus outbreak, we expect our overall performance to improve in the second half of the year as compared to the first half. In addition, we expect adjusted operating income in the second quarter of fiscal 2020 to be materially lower when compared to the prior year period due to higher margins in the second quarter last year ahead of the impact of tariffs.

Conference Call Information

A conference call to discuss fourth quarter and full year financial results is scheduled for today, March 17, 2020, at 8:00 am Central Time. Investors who would like to join the conference call are encouraged to pre-register for the conference call using the following link: http://dpregister.com/10138575. Callers who pre-register will be given a phone number and a unique PIN to bypass the live operator and gain immediate access to the call. Participants may pre-register at any time, including up to and after the call start time. Investors without internet access or who are unable to pre-register can join the call by dialing (844) 340-4762 or (412) 717-9617.

A live webcast of the conference call, together with certain supplemental presentation materials, will be available online at http://investors.michaels.com/. To listen to the live call, please go to the website at least 15 minutes before the call is scheduled to begin to register and download any necessary audio software. The webcast will be accessible for 3 months after the call. Additionally, a telephone replay will be available until March 31, 2020, by dialing (877) 344-7529 or (412) 317-0088, access code 10138575.

Non-GAAP Information

This press release includes non-GAAP measures including adjusted operating income, adjusted diluted earnings per share, adjusted net income, EBITDA and adjusted EBITDA. The Company has reconciled these non-GAAP financial measures with the most directly comparable GAAP financial measures in a table accompanying this release. The Company believes that these non-GAAP financial measures not only provide its management with comparable financial data for internal financial analysis but also provide meaningful supplemental information to investors. Specifically, these non-GAAP financial measures allow investors to better understand the performance of the Company's business and facilitate a meaningful evaluation of its quarterly and fiscal 2019 results on a comparable basis with its quarterly and fiscal 2018 results.

This press release also includes expected adjusted operating income. The Company does not provide an expected GAAP operating income range or a reconciliation of adjusted operating income because, without unreasonable effort, the Company is unable to predict with reasonable certainty the precise amount or timing of the recognition of expenses associated with the adjusted items.

The Company has provided this information as a means to evaluate the results of its ongoing operations. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results as reported under GAAP. The Company's presentation of non-GAAP financial measures should not be construed to imply that its future results will be unaffected by any such adjustments. Other companies in the Company's industry may calculate these items differently than it does.

Forward-Looking Statements

This news release includes forward-looking statements which reflect management's current views and estimates regarding the Company's industry, business strategy, goals, and expectations concerning its market position, future operations, including with respect to store openings and former A.C. Moore stores, profitability, capital expenditures, liquidity and capital resources, and other financial and operating information. The words "anticipate", "assume", "believe", "continue", "could", "estimate", "expect", “forecast”, "future", “guidance”, “imply”, "intend", "may", “outlook”, "plan", "potential", "predict", "project", and similar terms and phrases are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company cannot assure investors that future developments affecting the Company will be those that it has anticipated. Actual results may differ materially from these expectations due to risks relating to the effect of economic uncertainty; substantial changes to fiscal and tax policies; our reliance on foreign suppliers; regulatory changes; the seasonality of our business; changes in customer demand; damage to the reputation of the Michaels brand or our private and exclusive brands; unexpected or unfavorable consumer responses to our promotional or merchandising programs; our failure to adequately maintain security and prevent unauthorized access to electronic and other confidential information; increased competition including internet-based competition from other retailers; the impact of tariffs on certain products that we import from China and other risks and uncertainties including those identified under the heading “Risk Factors” in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"), which is available at www.sec.gov, and other filings that the Company may make with the SEC in the future. If one or more of these risks or uncertainties materialize, or if any of the Company's assumptions prove incorrect, the Company's actual results may vary in material respects from those projected in these forward-looking statements.


Any forward-looking statement made by the Company in this news release speaks only as of the date on which the Company makes it. Factors or events that could cause the Company's actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company does not undertake and specifically disclaims any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.

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, and Darice, a premier wholesale distributor in the craft, gift and decor industry. For a list of store locations or to shop online, visit www.michaels.com or download the Michaels app.


The Michaels Companies, Inc.
Consolidated Statements of Comprehensive Income
(Unaudited)














 



13 Weeks Ended

 

Fiscal Year Ended





February 1,

 

February 2,

 

February 1,

 

February 2,


(in thousands, except per share data)



2020

 

2019

 

2020

 

2019


Net sales



$

 

1,722,608

 


$

 

1,789,109

 


$

 

5,072,037

 


$

 

5,271,944

 


Cost of sales and occupancy expense




1,076,610

 



1,074,285

 



3,199,780

 



3,248,276

 


Gross profit




645,998

 



714,824

 



1,872,257

 



2,023,668

 


Selling, general and administrative




370,803

 



381,211

 



1,304,280

 



1,351,401

 


Restructure and impairment charges






59,960

 



48,332

 



104,238

 


Store pre-opening costs




238

 



423

 



4,608

 



4,417

 


Operating income




274,957

 



273,230

 



515,037

 



563,612

 


Interest expense




37,816

 



37,592

 



154,090

 



147,085

 


Losses on early extinguishments of debt and refinancing costs







1,316

 



1,835

 


Other (income) expense, net




(1,671

)



283

 



1,260

 



(2,362

)


Income before income taxes




238,812

 



235,355

 



358,371

 



417,054

 


Income taxes




57,161

 



53,952

 



85,776

 



97,509

 


Net income



$

 

181,651

 


$

 

181,403

 


$

 

272,595

 


$

 

319,545

 


 















Other comprehensive income, net of tax:















Foreign currency and interest rate swaps




85

 



(7,668

)



(8,273

)



(10,898

)


Comprehensive income



$

 

181,736

 


$

 

173,735

 


$

 

264,322

 


$

 

308,647

 


 















Earnings per common share:















Basic



$

 

1.24

 


$

 

1.15

 


$

 

1.78

 


$

 

1.87

 


Diluted



$

 

1.24

 


$

 

1.15

 


$

 

1.78

 


$

 

1.86

 


Weighted-average common shares outstanding:















Basic




146,638

 



157,593

 



153,134

 



170,610

 


Diluted




146,701

 



157,879

 



153,202

 



171,378

 
















 
The following table sets forth the percentage relationship to net sales of each line item of our unaudited consolidated statements of comprehensive income:








 




13 Weeks Ended

 

 

Fiscal Year Ended






February 1,

 

 

February 2,

 

 

February 1,

 

 

February 2,






2020

 

 

2019

 

 

2020

 

 

2019


Net sales


100.0

 

%


100.0

 

%


100.0

 

%


100.0

 

%

Cost of sales and occupancy expense


62.5

 



60.0

 



63.1

 



61.6

 


Gross profit


37.5

 



40.0

 



36.9

 



38.4

 


Selling, general and administrative


21.5

 



21.3

 



25.7

 



25.6

 


Restructure and impairment charges




3.4

 



1.0

 



2.0

 


Store pre-opening costs






0.1

 



0.1

 


Operating income


16.0

 



15.3

 



10.2

 



10.7

 


Interest expense


2.2

 



2.1

 



3.0

 



2.8

 


Losses on early extinguishments of debt and refinancing costs








Other (income) expense, net


(0.1

)








Income before income taxes


13.9

 



13.2

 



7.1

 



7.9

 


Income taxes


3.3

 



3.0

 



1.7

 



1.8

 


Net income


10.5

 

%


10.1

 

%


5.4

 

%


6.1

 

%















 

The Michaels Companies, Inc.

Consolidated Balance Sheets

(Unaudited)

 

 

 

 

 

 

 

 

 

 

February 1,

 

February 2,

 

(in thousands, except per share data)

 

 

2020

 

 

 

2019

 

 

ASSETS






Current Assets:






Cash and equivalents

$

 

409,964

 


$

 

245,887

 


Merchandise inventories

1,097,109

 



1,108,715

 


Prepaid expenses and other

62,287

 



98,659

 


Accounts receivable, net

30,442

 



62,263

 


Total current assets

1,599,802

 



1,515,524

 


Property and equipment, net

430,432

 



439,077

 


Operating lease assets

1,610,013

 




Goodwill

94,290

 



112,069

 


Other intangible assets, net

66,417

 



17,238

 


Deferred income taxes

18,201

 



25,005

 


Other assets

18,940

 



19,423

 


Total assets

$

 

3,838,095

 


$

 

2,128,336

 









 
LIABILITIES AND STOCKHOLDERS' DEFICIT






Current Liabilities:






Accounts payable

$

 

476,298

 


$

 

485,004

 


Accrued liabilities and other

347,136

 



378,742

 


Current portion of operating lease liabilities

306,796

 




Current portion of long-term debt

24,900

 



24,900

 


Income taxes payable

41,236

 



43,907

 


Total current liabilities

1,196,366

 



932,553

 


Long-term debt

2,644,460

 



2,681,000

 


Long-term operating lease liabilities

1,357,821

 




Other liabilities

85,912

 



140,978

 


Total liabilities

5,284,559

 



3,754,531

 









 
Stockholders’ Deficit:






Common Stock, $0.06775 par value, 350,000 shares authorized; 146,803 shares issued and outstanding at February 1, 2020; 157,774 shares issued and outstanding at February 2, 2019

9,852

 



10,594

 


Additional paid-in-capital

4,872

 



5,954

 


Accumulated deficit

(1,438,357

)



(1,628,185

)


Accumulated other comprehensive loss

(22,831

)



(14,558

)


Total stockholders’ deficit

(1,446,464

)



(1,626,195

)


Total liabilities and stockholders’ deficit

$

 

3,838,095

 


$

 

2,128,336

 









 

The Michaels Companies, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

 

 


 

 

 

 

 

 

 


Fiscal Year ended

 

 


February 1,

 

February 2,

(in thousands)

 


2020

 

2019

Cash flows from operating activities:






Net income

$

 

272,595

 


$

 

319,545

 

Adjustments to reconcile net income to net cash provided by operating activities:





Non-cash operating lease expense


325,962

 



Depreciation and amortization


125,499

 



124,271

 

Share-based compensation


22,910

 



27,082

 

Debt issuance costs amortization


4,451

 



4,997

 

Loss on write-off of investment


5,036

 



Accretion of long-term debt, net


(129

)



(518

)

Restructure and impairment charges


48,332

 



104,238

 

Deferred income taxes


9,455

 



8,131

 

Losses on early extinguishments of debt and refinancing costs


1,316

 



1,835

 

Changes in assets and liabilities:






Merchandise inventories


9,504

 



(63,890

)

Prepaid expenses and other


1,671

 



3,576

 

Accounts receivable


29,516

 



(14,100

)

Other assets


(3,562

)



(1,497

)

Operating lease liabilities


(323,010

)



Accounts payable


(14,787

)



(10,461

)

Accrued interest


(2,192

)



(691

)

Accrued liabilities and other


(36,020

)



(17,225

)

Income taxes


17,647

 



(44,532

)

Other liabilities


(1,019

)



3,495

 

Net cash provided by operating activities


493,175

 



444,256

 








 
Cash flows from investing activities:






Additions to property and equipment


(120,545

)



(145,387

)

Acquisition of intangible assets


(58,000

)



Net cash used in investing activities


(178,545

)



(145,387

)








 
Cash flows from financing activities:






Common stock repurchased


(107,997

)



(456,585

)

Payments on term loan credit facility


(24,900

)



(24,900

)

Payment of 2020 senior subordinated notes


(510,000

)



Issuance of 2027 senior notes


500,000

 



Borrowings on asset-based revolving credit facility


23,200

 



355,400

 

Payments on asset-based revolving credit facility


(23,200

)



(355,400

)

Payment of debt refinancing costs


(8,162

)



(1,117

)

Payment of dividends




(317

)

Proceeds from stock options exercised


506

 



4,041

 

Net cash used in financing activities


(150,553

)



(478,878

)








 
Net change in cash and equivalents


164,077

 



(180,009

)

Cash and equivalents at beginning of period


245,887

 



425,896

 

Cash and equivalents at end of period

$

 

409,964

 


$

 

245,887

 








 

The Michaels Companies, Inc.
Reconciliation of Adjusted EBITDA
(Unaudited)














 



13 Weeks Ended

 

 

Fiscal Year Ended




February 1,

 

February 2,

 

 

February 1,

 

February 2,

(in thousands)

2020

 

2019

 

2020

 

2019

Net cash provided by operating activities

$

 

386,808

 


$

 

418,442

 



$

 

493,175

 


$

 

444,256

 

Non-cash operating lease expense


(81,704

)






(325,962

)



Depreciation and amortization


(31,474

)



(34,338

)




(125,499

)



(124,271

)

Share-based compensation


(4,246

)



(6,302

)




(22,910

)



(27,082

)

Debt issuance costs amortization


(942

)



(1,238

)




(4,451

)



(4,997

)

Loss on write-off of investment







(5,036

)



Accretion of long-term debt, net


(66

)



133

 




129

 



518

 

Restructure and impairment charges




(59,960

)




(48,332

)



(104,238

)

Deferred income taxes


(19,439

)



(421

)




(9,455

)



(8,131

)

Losses on early extinguishments of debt and refinancing costs







(1,316

)



(1,835

)

Changes in assets and liabilities


(67,286

)



(134,913

)




322,252

 



145,325

 

Net income


181,651

 



181,403

 




272,595

 



319,545

 

Interest expense


37,816

 



37,592

 




154,090

 



147,085

 

Income taxes


57,161

 



53,952

 




85,776

 



97,509

 

Depreciation and amortization


31,474

 



34,338

 




125,499

 



124,271

 

Interest income


(1,172

)



(775

)




(3,185

)



(3,160

)

EBITDA


306,930

 



306,510

 




634,775

 



685,250

 

Adjustments:













Losses on early extinguishments of debt and refinancing costs







1,316

 



1,835

 

Share-based compensation


4,246

 



6,302

 




22,910

 



27,082

 

Restructure and impairment charges




59,960

 




48,332

 



104,238

 

Severance costs


431

 






5,607

 



902

 

Store pre-opening costs


238

 



423

 




4,608

 



4,417

 

Store remodel costs


94

 



74

 




337

 



5,153

 

Foreign currency transaction (gains) losses


(383

)



672

 




276

 



(278

)

Store closing costs


313

 



(187

)




(156

)



3,134

 

CEO transition costs(1)


3,668

 






9,236

 



Other(2)


2,173

 



880

 




6,661

 



2,916

 

Adjusted EBITDA

$

 

317,710

 


$

 

374,634

 



$

 

733,902

 


$

 

834,649

 

(1)CEO transition costs includes $5.6 million of severance paid to our previous CEO and a $3.7 million sign-on bonus for our new CEO.
(2)Other adjustments primarily relate to items such as moving and relocation expenses, franchise taxes, sign-on bonuses, directors fees and search costs.

The Michaels Companies, Inc.

Reconciliation of GAAP basis to Adjusted operating income, Adjusted net income and Adjusted earnings per share

(Unaudited)

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 


13 Weeks Ended

 

Fiscal Year Ended

 

 


February 1,

 

February 2,

 

February 1,

 

February 2,

(In thousands, except per share)

2020

 

2019

 

2020

 

2019

Operating income

$

 

274,957

 


$

 

273,230

 


$

 

515,037

 


$

 

563,612

 

Restructure and impairment charges and other (a)




59,960

 



48,332

 



103,935

 

Inventory write-down (b)








4,104

 

CEO sign-on bonus


3,668

 





3,668

 



CEO severance costs






5,569

 



Adjusted operating income

$

 

278,625

 


$

 

333,190

 


$

 

572,606

 


$

 

671,651

 














 
Net income

$

 

181,651

 


$

 

181,403

 


$

 

272,595

 


$

 

319,545

 

Restructure and impairment charges and other (a)




59,960

 



48,332

 



103,935

 

Inventory write-down (b)








4,104

 

CEO sign-on bonus


3,668

 





3,668

 



CEO severance costs






5,569

 



Write-off of investment (c)






5,036

 



Losses on early extinguishments of debt and refinancing costs





1,316

 



1,835

 

Interest on 2020 senior subordinated notes (d)






1,748

 



Tax adjustment for above items (e)


(257

)



(14,245

)



(14,489

)



(26,224

)

The Tax Act - adjustments for repatriation taxes and the revaluation of deferred tax assets (f)








987

 

Adjusted net income

$

 

185,062

 


$

 

227,118

 


$

 

323,775

 


$

 

404,182

 














 
Earnings per common share, diluted

$

 

1.24

 


$

 

1.15

 


$

 

1.78

 


$

 

1.86

 

Restructure and impairment charges and other (a)




0.38

 



0.32

 



0.60

 

Inventory write-down (b)








0.02

 

CEO sign-on bonus


0.02

 





0.02

 



CEO severance costs






0.04

 



Write-off of investment (c)






0.03

 



Losses on early extinguishments of debt and refinancing costs





0.01

 



0.01

 

Interest on 2020 senior subordinated notes (d)






0.01

 



Tax adjustment for above items (e)


(0.00

)



(0.09

)



(0.09

)



(0.15

)

The Tax Act - adjustments for repatriation taxes and the revaluation of deferred tax assets (f)








0.01

 

Adjusted earnings per common share, diluted

$

 

1.26

 


$

 

1.44

 


$

 

2.11

 


$

 

2.35

 

(a) Fiscal 2019 excludes charges related to the closure of our Pat Catan's stores and impairment charges recorded as a result of lower than expected operating performance in our wholesale business. Fiscal 2018 excludes charges related to the closure of our Pat Catan's and Aaron Brothers stores and $0.3 million of operating income from the operation of Aaron Brothers (prior to closing).
(b) Excludes an inventory write-down related to a product purchased from a third-party which did not meet the Company's quality standards.
(c) Excludes the write-off of an investment in a liquidated business.
(d) Excludes interest paid on our 2020 Senior Subordinated Notes during the period between the issuance of our 2027 Senior Notes and the redemption of our 2020 Senior Subordinated Notes.
(e) Adjusts for the tax impact of the restructure and impairment charges, the inventory write-down, the CEO sign-on bonus, severance charges related to the departure of the Company's former CEO, the write-off of an investment in a liquidated business, losses on early extinguishments of debt and refinancing costs and interest on a portion of our 2020 Senior Subordinated Notes.
(f) Excludes adjustments related to repatriation taxes for accumulated earnings of foreign subsidiaries and the revaluation of deferred tax assets resulting from the enactment of the Tax Cuts and Jobs Act of 2017.

The Michaels Companies, Inc.
Summary of Operating Data
(Unaudited)











 











 
The following table sets forth certain of our unaudited operating data:










13 Weeks Ended

 

 

Fiscal Year Ended





February 1,

 

February 2,

 

 

February 1,

 

February 2,





2020

 

2019

 

 

2020

 

2019


Michaels stores:










Open at beginning of period

 

1,274

 


 

1,256

 



 

1,258

 


 

1,238

 


New stores


 

3

 



 

21

 


 

24

 


Relocated stores opened


 

1

 



 

13

 


 

21

 


Closed stores


 

(1

)



 

(5

)


 

(4

)


Relocated stores closed


 

(1

)



 

(13

)


 

(21

)


Open at end of period

 

1,274

 


 

1,258

 



 

1,274

 


 

1,258

 













 
Aaron Brothers stores:










Open at beginning of period





 

97

 


Closed stores





 

(97

)


Open at end of period

















 
Pat Catan's stores:










Open at beginning of period


 

36

 




 

36

 


Closed stores


 

(36

)




 

(36

)


Open at end of period

















 
Total store count at end of period

 

1,274

 


 

1,258

 



 

1,274

 


 

1,258

 













 











 
Other Operating Data:










Average inventory per Michaels store (in thousands)

$

816

 


$

832

 



$

816

 


$

832

 


Comparable store sales

 

(2.4

)

%

 

(0.4

)

%


 

(1.9

)

%

 

0.8

 

%

Comparable store sales, at constant currency

 

(2.5

)

%

%

 

(1.8

)

%

 

0.9

 

%












 

 

Contacts

Investor Contact:
Jim Mathias
972.409.1393
James.Mathias@michaels.com

ICR, Inc.
Farah Soi
203.682.8200
Farah.Soi@icrinc.com

or

Financial Media Contact:
ICR, Inc.
Jessica Liddell/ Julia Young
203.682.8200
Michaels@icrinc.com