Michaels Cos.  (MIK) - Get Report  surged 10% to $12.98 Tuesday after the arts and crafts specialty retailer beat Wall Street's fourth-quarter earnings expectations.

The Irving, Texas-based company reported net income of $181.4 million, or $1.15 a share, vs. $202.9 million, or $1.11 a share, a year ago. Adjusted earnings came to $1.44 a share, ahead of the $1.42 FactSet consensus. Sales totaled $1.79 billion, down from $1.89 billion a year ago, but beat the consensus total of $1.78 billion.

The company said the drop in fourth-quarter sales was largely due to the extra week in the fourth quarter of fiscal 2017, the closure of all 94 full-size Aaron Brothers stores in the first quarter of fiscal 2018, and a 0.4% decline in same-store sales. Analysts were calling for a 0.2% decline

For fiscal 2019, the company is expecting adjusted earnings of $2.34 to $2.46 a share and sales of $5.19 billion to $5.24 billion. Analysts surveyed by FactSet are calling for earnings of $2.48 a share on sales of $5.246 billion.

Net income for 2018 was $319.5 million, compared with $390.5 million in fiscal 2017. Net sales were $5.271 billion, compared with $5.362 billion a year earlier.

"As expected, we saw nice momentum in the quarter resulting from investments we made earlier in the year, including enhancements made to Michaels.com and the Michaels app; the launch of buy online, pick up in store in all U.S. stores; a new promotional tool to help us manage discounts more effectively; and the conversion of 238 additional stores to our flexible merchandising area format," Denise Paulonis, executive vice president and chief financial officer, said in a statement.

Will You Have Enough Money Retire?

Want to learn about retirement planning from some of the nation's top experts? Join TheStreet's Robert "Mr. Retirement" Powell live in New York on April 6 for our Retirement Strategies Symposium. For a limited time, tickets are available for $99 for this full-day event. Check out the agenda, learn about the speakers and sign up here.