Michaels Cos. has achieved a remarkable financial comeback, with its bonds nearing 100 cents again, signaling a recovery from previous financial difficulties. Since April, the Apollo Global Management Inc.-backed retailer has consistently posted strong results. Most recently, the company expects same-store sales to increase by 7.9% to 8.2% in the fourth quarter.
This success is largely attributed to Michaels' aggressive strategy to fill the void left by the closures of Party City in late 2024 and Joann Fabric. Michaels quickly introduced "The Party Shop" with dedicated "Balloon Bars" in its stores, along with 700 new party products. The company also acquired Joann's IP and private labels, expanding its yarn assortment by 50% and adding fabric to 850 stores, with plans to reach 1,100 stores.
Michaels' President and COO, Nicholas Bertram, highlighted the rapid pace of expansion, including building an entire helium network and training staff for balloon inflation services across its 1,300 locations, surpassing Party City's former 700 stores. CEO David Boone emphasized that the company's focus was to seize market opportunities, positioning Michaels as a unique player in retail. The company also launched time-based balloon reservations and has seen its birthday event business quintuple year-over-year, following price reductions in 2024. Michaels plans to introduce a new store model with "patch bars" and other programs starting in the first half of 2026.
