WMT - Michaels: Catching A Falling Knife
Source: Barron's
Traditional retailers have faced strong headwinds this earnings season. Many have faced stagnant to declining revenue growth and shrinking margins. Michaels Companies (MIK) has been no different. In its most recent quarter, the company reported revenue of $1.22 billion, down 4% Y/Y. The company's financial results have been so disconcerting that Michaels replaced its CEO with Walmart's (WMT) former Chief Merchandising Officer, Ashley Buchanan:
Michaels Stores [NASDAQ:MIK] appoints Walmart executive Ashley Buchanan as its new President and CEO, effective Jan. 6.
Buchanan will succeed Mark Cosby as CEO