NEW YORK, NY / ACCESSWIRE / June 15, 2018 / While it was an exciting day for one crafts company, it was a very disappointing day for another. Shares of Etsy were exploding in Thursday trading and even hitting a new high after announcing an increase in its cut that the company takes from sales. Shares of The Michaels Companies plummeted and came just 50 cents shy of hitting its 52-week low during intra-day trading after issuing worrisome second quarter guidance.

RDI Initiates Coverage on:

Etsy, Inc.
https://www.rdinvesting.com/report/?ticker=ETSY

The Michaels Companies, Inc.
https://www.rdinvesting.com/report/?ticker=MIK

Etsy, Inc. shares closed up a little over 26% on Thursday with about 26.3 million shares traded. The stock hit a new high of $44.78 yesterday after the company announced that it would be raising the cut it takes from sales made on its site to 5% from just 3.5%. The new fee takes effect on July 16. The company will also start charging sellers a fee of 5% on shipping cost. The company's CFO Rachel Glaser stated, "Our revised fee structure will allow us to make more meaningful investments on behalf of our sellers while remaining what we believe is the best value for entrepreneurs looking to start, manage, and grow a creative business." CEO John Silverman said, "Our two million active sellers have individual business goals and aspirations, and we want to support them no matter where they are on their journey. By listening to the needs of our sellers, we designed our new subscription packages with a combination of tools to help them succeed at each phase of their business lifecycle." Etsy also upped its revenue growth projections for 2018 to a range of 32 and 34% from a previous projection of 22% to 24%.

Access RDI's Etsy, Inc. Research Report at:
https://www.rdinvesting.com/report/?ticker=ETSY

The Michaels Companies, Inc. shares were plummeting in yesterday's trading session, closing the day down 14% on trading volume about ten times higher than usual. The stock fell as much as 19% after the arts and crafts materials retailer posted first quarter results and issued second quarter guidance. While first quarter results were impressive, with top-line sales hitting $1.16 billion and adjusted earnings hitting $0.39 per diluted share, it was second quarter guidance that had Wall Street on edge. First quarter results had beat the $1.15 billion in top-line sales and $0.38 in adjusted earnings that analysts had been waiting for. For the second quarter, The Michaels Companies has projected mid-point guidance of $0.13 per share for earnings while analysts were waiting for $0.19 a share. CEO Chuck Rubin remarked, "We continue to operate from a position of financial strength, as the industry leader with healthy operating margins, strong cash flows and high returns on invested capital. We remain committed to leveraging these strengths to accelerate key initiatives in fiscal 2018 to drive future sales and earnings growth."

Access RDI's The Michaels Companies, Inc. Research Report at:
https://www.rdinvesting.com/report/?ticker=MIK

Our Actionable Research on Etsy, Inc. (NASDAQ: ETSY) and The Michaels Companies, Inc. (NASDAQ: MIK) can be downloaded free of charge at Research Driven Investing.

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Disclaimer: This article is written by an independent contributor of RDInvesting.com and Nadia Noorani, a CFA® charter holder, has provided necessary guidance in preparing the document templates. RDInvesting.com is neither a registered broker-dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.

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SOURCE: RDInvesting.com