MIK - Michaels tipped to have big Q4 due to consumer spending on holiday cheer

Michaels Companies ([[MIK]] -1.9%) could be a big beneficiary of the nesting trend around the holidays, according to Bank of America,The firm thinks that consumers are likely spending more than usual on seasonal décor and children’s crafts & gifts as they attempt to bring "extra cheer" into their homes, consistent with the year-to-date benefit that arts & crafts retailers have experienced throughout the pandemic."Therefore we expect 4Q to yield strong same-store sales growth for MIK and others, but ultimately expect payback in 2021 as other forms of entertainment (sports, activities outside of the home) begin to take back wallet."Michaels was one of the stocks mentioned in Seeking Alpha's Catalyst Watch piece due to the big share price swing implied by options trading ahead of the Q3 earnings report.See consensus estimates on Michaels.

For further details see:

Michaels tipped to have big Q4 due to consumer spending on holiday cheer