In the fourth quarter ended January 28, The Michaels Cos. recorded net income of $195.3 million, or 95 cents per diluted share, versus $183.7 million, or 87 cents per diluted share, in the period a year previous.
Income without the foreign exchange rate effect was $197.4 million versus $176.2 million in the year-earlier quarter. The company added that, excluding non-recurring, inventory-related purchase accounting adjustments and integration expenses associated with the acquisition of Lamrite West, adjusted net income for the 2016 fourth quarter was $195.9 million, or 96 cents per diluted share.
Adjusted diluted earnings per share exceeded a MarketBeat published analyst average estimate by a penny.
Comparable store sales decreased 1% in the quarter versus the 2015 period. Net sales were $1.75 billion versus $1.68 billion in the quarter a year before. Operating income was $336.6 million up from $324.2 million in the quarter year over year.
For the full fiscal year, net income was $378.2 million, or $1.82 per diluted share, versus $362.9 million, or $1.72 million per diluted share, in the year previous. Income without foreign exchange rate effect was $386 million versus $352.7 million in the year earlier. In addition, the company related that, excluding the financial impact of the Lamrite West acquisition and losses on early extinguishments of debt and refinancing costs, adjusted net income for fiscal 2016 was $389.6 million, $1.88 per diluted share.
Comparable store sales decreased 0.5% versus fiscal 2015. Net sales were $5.2 billion versus $4.91 billion in the year before. Operating income was $715.3 million down from $720.6 million year over year. Cost of sales and occupancy, and SG&A expenses rose from fiscal 2015, cutting into operating profit.
“Today, we reported fourth quarter results within our initial guidance, and I am encouraged that we delivered market share gains and increased earnings,” said Chuck Rubin, Michaels chairman and CEO. “Looking back on the year, I am pleased we increased our free cash flow to $450 million and utilized the strength of our balance sheet to deliver value to our shareholders. Importantly, we made progress against each of the priorities of our Vision 2020 strategy, which is our long-term strategy to increase market share and drive shareholder return.”
