The Michaels Companies, Inc. reported Q2 eCommerce growth of over 350 percent year on year, fueled by bolstered and expanded omnichannel functions such as same-day delivery and curbside pickup, according to a Thursday (Sept. 3) announcement.
“Michaels strong second quarter results are a testament to the solid execution of our team in an unprecedented environment,” Chief Executive Officer Ashley Buchanan said in the announcement. “We saw strong demand and customer engagement across our stores, and the multiple omnichannel touchpoints we introduced over the past few months.”
Michaels reported that all retail locations opened again by the start of July. It had positive 12 percent Q2 comp store sales, fueled by formidable demand in open retail locations and digital.
The firm said it concluded Q2 FY 20 in a formidable liquidity position of roughly $1.3 billion.
"Strong performance combined with proactive cash management actions taken earlier this year resulted in outstanding quarterly free cash flow generation,” Buchanan said in the announcement.
Michaels intends to have a digital investor day on Sept. 24.
As for its overall results, Michaels reported an adjusted diluted loss per share of 30 cents on net sales of $1.15 billion. Analysts had expected a loss per share of 8 cents on revenues of $1.01 billion.
The news comes as the debut of omnichannel functionality like curbside pickup and same-day delivery, as well as other drivers, helped power 296 percent eCommerce growth for Michaels in Q1.
At the time, the retailer registered a 27.6 percent fall in comparable store sales for the 13 weeks ending May 2, 2020 in contrast to a 2.9 percent drop for the 13 weeks ending May 4, 2019.
Michaels noted that fewer than 500 stores were open as of May 2 because of limitations related to the pandemic.
In December, news surfaced that Buchanan would be taking over as chief executive from Mark Cosby.
Buchanan was to start in her role on Jan. 6 and Cosby was going to remain on to assist until April 1 per news at the time.