Today’s Research Reports on Stocks to Watch: The Michaels Companies and The Kroger

NEW YORK, NY / ACCESSWIRE / March 23, 2018 / Michaels shares fell on Thursday after the company projected a weak first quarter, despite strong fourth quarter sales. Shares of Kroger also fell into the red. It was this week that Kroger said its Fred Meyer business would halt the sale of guns and ammunition.

RDI Initiates Coverage on:

The Michaels Companies, Inc.
https://rdinvesting.com/news/?ticker=MIK

The Kroger Co.
https://rdinvesting.com/news/?ticker=KR

The Michaels Companies, Inc. shares closed down 7.76% on nearly 13 million shares traded on Thursday. The company saw its shares fall after delivering soft guidance moving forward. Shares fell as much as 11.9% yesterday as traders worried about the company’s outlook. Michaels released strong fourth quarter results as net sales hit $1.89 billion, representing an 8% growth YOY. Adjusted EPS saw an increase of 24% YOY at $1.19 per diluted share. The arts and crafts retailer forecast first quarter 2018 revenue and EPS projections that came in below analysts’ estimates. Michaels is expecting around $1.15 billion in revenue and adjusted earnings near $0.37 per diluted share. Consensus called for EPS of $0.46 and revenue of $1.18 billion. The company’s CEO Chuck Rubin remains optimistic and said, “Building on the progress we made in fiscal 2017, in fiscal 2018 we will reinvest some of the benefits of tax reform to accelerate planned investments to drive future sales and earnings growth. While this acceleration will result in temporarily elevated levels of operating expense in fiscal 2018, I am confident these investments will position us to increase our market share and expand our leadership in the arts and crafts channel.”

Access RDI’s The Michaels Companies, Inc. Research Report at:
https://rdinvesting.com/news/?ticker=MIK

The Kroger Co. shares closed down a modest 0.26% on Thursday with about 11.6 million shares traded. It was earlier this week that the nation’s largest operator of traditional supermarkets said that its Oregon-based Frey Meyer store unit would not be selling firearms and ammunition to buyers under age 21. The company sells guns at 43 of its 133 Fred Meyer general merchandise stores located in Alaska, Oregon, Idaho, and Washington. According to the company, Fred Meyer has decided to halt sales of guns and ammunition due to weak sales in the category. In a press release Kroger stated, “The company made the decision … after evaluating changing customer preferences and the fact that there have already been efforts to steadily reduce this category in Fred Meyer stores over the last several years due to softening consumer demand. More recently Fred Meyer has been transitioning away from gun departments as a result of the ongoing work to optimize space in Fred Meyer stores.”

Access RDI’s The Kroger Co. Research Report at:
https://rdinvesting.com/news/?ticker=KR

Our Actionable Research on The Michaels Companies, Inc. (NASDAQ: MIK) and The Kroger Co. (NYSE: KR) can be downloaded free of charge at Research Driven Investing.

Research Driven Investing

We are committed to providing relevant and actionable information for the self-directed investor. Our research is reputed for being a leader in trusted, in-depth analysis vital for informed strategic trading decisions. The nimble investor can leverage our analysis and collective expertise to execute a disciplined approach to stock selection.

RDInvesting has not been compensated; directly or indirectly; for producing or publishing this document.

Disclaimer: This article is written by an independent contributor of RDInvesting.com and Nadia Noorani, a CFA® charter holder, has provided necessary guidance in preparing the document templates. RDInvesting.com is neither a registered broker-dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.

CONTACT

For any questions, inquiries, or comments reach out to us directly at:

Address:

Research Driven Investing, Unit #901 511 Avenue of the Americas, New York, NY, 10011

Email:

contact@rdinvesting.com

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: RDInvesting.com

ReleaseID: 494015