UPDATE: Michaels Q2 Results Top Street View, Shares Jump

Shares of The Michaels Companies

jumped more than 9% in pre-market trading after the company reported upbeat fiscal second-quarter results. The Irving, Texas-based company reported a quarterly loss of $48 million, or $0.26 per share, versus a year-ago profit of $17 million, or $0.09 per share. Excluding non-recurring items, the company earned $0.15 per share. Its sales climbed 4.9% to $948 million from $904 million, while same-store sales surged 3.2% in the quarter. However, analysts were expecting earnings of $0.08 per share on revenue of $943 million. The company's gross profit increased 40 basis points to 37.7% of net sales in the quarter. Operating income fell to $52 million versus $71 million. During the quarter, the company opened 3 new Michaels stores, relocated 5 Michaels stores, and closed 1 Aaron Brothers store. Michaels ended the quarter with $90 million in cash and $3.37 billion in debt, while inventory at the end of the second quarter was $937 million. Chuck Rubin, Chief Executive Officer, said, "We are very pleased to build on our solid start to fiscal 2014 with another quarter of strong performance. Broad-based sales strength was accompanied by healthy margins and our characteristic expense discipline, even as we invested in our strategic initiatives." Michaels expects full-year adjusted earnings of $1.38 to $1.42 per share, versus analysts' estimates of $1.34 per share. Michaels shares climbed 9.64% to $16.60 in pre-market trading.