After shutting its stores temporarily due to the Covid-19 pandemic, there is little surprise in learning that Michael’s has recorded a first quarter loss and missed bottom and top-line expectations.
The retailer, which specialises in arts and crafts has recorded a net loss of $63.5M in the quarter ending 2 May, compared to income of $37.7M in the year-earlier period. Sales decreased to $799.9M from $1.094bn whilst same-store sales fell 27.6 per cent.
“This quarter, we significantly accelerated Michaels’ transformation into an omni-channel retailer by introducing a robust set of customer-facing digital and fulfilment capabilities, CEO Ashley Buchanan stated. “As we reopen stores, we are encouraged by the trends we are seeing. Moving through the rest of the year, we will continue to introduce additional capabilities that enable us to serve customers wherever and however they want to shop.”
As of yesterday, the business has reopened approximately 1,000 of its 1,273 stores and they all have enhanced customer and employee safety measures in place. Michael’s expects that the vast majority of its stores will be open by the end of the month.
