MIK - Why The Michaels Companies Stock Plunged 62% In March
Shares of The Michaels Companies (NASDAQ: MIK) plummeted 62.2% in March, according to data from S&P Global Market Intelligence. The arts and crafts retailer was already struggling under Chinese tariffs and the rise of e-commerce before the novel coronavirus turned the retail market upside down.
Please, have a seat. This tale gets a little ugly.
When Michaels reported fourth-quarter results on March 17, CEO Ashley Buchanan (who actually assumed the CEO title on April 1) laid out a detailed plan of operations for the upcoming fiscal year. He also made it clear that the coronavirus shouldn't cause much more than a hiccup in Michaels' supply chains and a modest drop in consumer demand for his company's products.