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Michaels Cos.  (MIK) - Get Michaels Companies Inc 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.

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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 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.

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