In a statement, the arts supplies retailer, said net income in the fourth quarter to February 3, came in at US$202.9mln or US$1.11 a share, up from the US$197.4mln or 95 US cents a share, posted a year ago.
To invest in its strategic priorities
Adjusted per-share earnings stood at US$1.19, falling in line with market consensus.
In the quarter, sales rose to US$1.891bn from US$1.751bn, comfortably beating market expectations for US$1.879bn.
Same-store sales rose 2.5%, again beating the 1.8% growth expected by analysts.
Michaels said it will continue to invest in its strategic priorities in fiscal 2018, including its brand assortment and online business.
It plans to close 94 of its Aaron Brothers stores and reposition the brand as a "store-within-a-store," offering custom framing services at Michaels Stores.
It is expected to take charges of US$37mln to $42mln on the closures, most of which will be booked in the first quarter.
Michaels is now guiding sales of US$5.217bn to US$5.293bn, and adjusted EPS of US$2.19 to US$2.32, falling short of market consensus for sales of US$5.368bn and EPS of US$2.59.
In premarket, Michaels shares were down 5.62% at US$20.00.