The Irving, TX-based arts and crafts retailer generated revenue of $1.06 billion in the period, lower that Wall Street's projections of $1.07 billion. Revenue was up 7.7% year-over-year.
Adjusted earnings of 17 cents per diluted share met analyst's forecasts.
Same-store sales increased 0.7% during the quarter.
Michael's projects adjusted earnings between 42 cents per share and 44 cents per share in the third quarter. Wall Street is estimating earnings of 42 cents per share.
For the full year, the company is expecting adjusted earnings in the range of $1.92 per share to $1.98 per share. Analysts are looking for earnings of $1.94 per share.
CEO Chuck Rubin said in a statement that Michael's has faced a "choppy" retail environment so far this year.
"As we move into the second half of the year and into fiscal 2017, we expect to see the benefits of our strategic investments on sales and profitability," Rubin added.
Additionally, Michael's named Denise Paulonis as executive VP and chief financial officer, effective August 29. She succeeds Vice Chairman Chuck Sonsteby.
"In her new position, Denise will continue to be a strategic partner with our leadership team as we maintain our focus on delivering our Vision 2020 strategy and strong financial returns," Rubin said.
Shares of Michael's closed up on Wednesday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "sell" with a ratings score of D+.
Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: MIK