Earnings Warning Sends Michaels Shares Tumbling

By Basch, Mark | The Florida Times Union, October 23, 2000 | Go to article overview
Save to active project

Earnings Warning Sends Michaels Shares Tumbling

Basch, Mark, The Florida Times Union

Michaels Stores Inc. last week wiped out a good year for its shareholders by announcing that earnings for the rest of this fiscal year will be a bit lower than expected.

The Texas-based arts and crafts retailer, which has a distribution center in Jacksonville, did not announce a drastic drop, saying that earnings for the fiscal year ending Feb. 3 are projected to be $2.40 a share, lower than analysts' previous forecasts of $2.58. That $2.40 would still be a 20 percent increase over last year.

But in a touchy market, that announcement sent the stock reeling. It fell $15.63 last Wednesday to $19.81 on volume of 10.4 million shares, about 25 times its normal daily volume.

That put the stock below its 1999 closing price of $28.50 and well below its 2000 high of $49.63, set in August.

"Recently we have seen significantly softer sales trends which we attribute to general economic conditions and uncertainties," said a statement by Michaels Chief Executive Officer Michael Rouleau.

"We are well prepared for the fourth quarter. However, if there is a continuation of these trends, our fourth-quarter earnings will be negatively impacted," he said.

Michaels said earnings for the third quarter ending Oct. 28 will be about 40 cents a share, below analysts' forecasts of 45 cents. The results will be released on Nov. 21.

The company owns and operates 619 Michaels stores in 48 states, Canada and Puerto Rico and 112 Aaron Brothers stores.

Progress at Access

Glenn Smith understands why shareholders may be getting antsy waiting for signs of profits from Access Power Inc., a 4-year-old Ponte Vedra Beach-based company that provides long distance telephone services through the Internet.

Access Power is still in its development stages and has reported revenue of only $702,168 from its inception in 1996 through June 30 of this year.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Cite this article

Cited article

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

Earnings Warning Sends Michaels Shares Tumbling


Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?