Michaels Companies 10-Q3 Sep 202021 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Aug. 01, 2020	Aug. 25, 2020
Document and Entity Information
Entity Registrant Name	MICHAELS COMPANIES, INC.
Entity Central Index Key	0001593936
Document Type	10-Q
Document Period End Date	Aug. 1, 2020
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-36501
Entity Tax Identification Number	37-1737959
Entity Address, Address Line One	8000 Bent Branch Drive
Entity Address, City or Town	Irving
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75063
Entity Incorporation, State or Country Code	DE
City Area Code	972
Local Phone Number	409-1300
Amendment Flag	false
Current Fiscal Year End Date	--01-30
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Title of 12(b) Security	Common Stock
Trading Symbol	MIK
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		147,437,563

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019	Aug. 01, 2020	Aug. 03, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net sales	$ 1,148,170	$ 1,033,689	$ 1,948,058	$ 2,127,408
Cost of sales and occupancy expense	805,658	666,703	1,383,724	1,342,783
Gross profit	342,512	366,986	564,334	784,625
Selling, general and administrative	289,053	290,074	570,394	610,670
Restructure charges		3,869		6,956
Store pre-opening costs	186	1,743	1,345	2,969
Operating (loss) income	53,273	71,300	(7,405)	164,030
Interest expense	36,740	40,134	74,863	77,493
Losses on early extinguishments of debt and refinancing costs		1,155		1,155
Other expense (income), net	1,365	(252)	(1,558)	2,853
Income (loss) before income taxes	15,168	30,263	(80,710)	82,529
Income taxes	22,925	5,716	(9,448)	20,291
Net (loss) income	(7,757)	24,547	(71,262)	62,238
Other comprehensive income (loss), net of tax:
Foreign currency and cash flow hedges	8,960	(4,762)	(5,376)	(9,588)
Comprehensive income (loss)	$ 1,203	$ 19,785	$ (76,638)	$ 52,650
(Loss) earnings per common share:
Basic (in dollars per share)	$ (0.05)	$ 0.16	$ (0.48)	$ 0.39
Diluted (in dollars per share)	$ (0.05)	$ 0.16	$ (0.48)	$ 0.39
Weighted-average common shares outstanding:
Basic (in shares)	147,296	157,272	147,080	157,511
Diluted (in shares)	147,296	157,273	147,080	157,535

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Aug. 01, 2020	Feb. 01, 2020	Aug. 03, 2019
Current Assets:
Cash and equivalents	$ 651,118	$ 409,964	$ 130,981
Merchandise inventories	1,021,691	1,097,109	1,256,465
Prepaid expenses and other	60,721	62,287	69,672
Accounts receivable, net	31,043	30,442	23,941
Total current assets	1,764,573	1,599,802	1,481,059
Property and equipment, at cost	1,738,883	1,706,520	1,703,912
Less accumulated depreciation and amortization	(1,326,620)	(1,276,088)	(1,266,421)
Property and equipment, net	412,263	430,432	437,491
Operating lease assets	1,552,626	1,610,013	1,611,029
Goodwill	94,290	94,290	112,069
Other intangible assets, net	59,839	66,417	14,082
Deferred income taxes	22,435	18,201	28,142
Other assets	17,322	18,940	23,277
Total assets	3,923,348	3,838,095	3,707,149
Current Liabilities:
Accounts payable	627,619	476,298	533,473
Accrued liabilities and other	368,075	347,136	321,847
Current portion of operating lease liabilities	329,465	306,796	298,993
Current portion of long-term debt	24,900	24,900	24,900
Income taxes payable	29,141	41,236	11,974
Total current liabilities	1,379,200	1,196,366	1,191,187
Long-term debt	2,633,643	2,644,460	2,655,391
Long-term operating lease liabilities	1,317,378	1,357,821	1,377,039
Other liabilities	103,010	85,912	71,102
Total liabilities	5,433,231	5,284,559	5,294,719
Commitments and contingencies
Stockholders' Deficit:
Common stock, $0.06775 par value, 350,000 shares authorized; 147,437 shares issued and outstanding at August 1, 2020; 146,803 shares issued and outstanding at February 1, 2020; and 155,199 shares issued and outstanding at August 3, 2019	9,897	9,852	10,419
Additional paid-in-capital	18,046	4,872
Accumulated deficit	(1,509,619)	(1,438,357)	(1,573,843)
Accumulated other comprehensive loss	(28,207)	(22,831)	(24,146)
Total stockholders' deficit	(1,509,883)	(1,446,464)	(1,587,570)
Total liabilities and stockholders' deficit	$ 3,923,348	$ 3,838,095	$ 3,707,149

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Aug. 01, 2020	Feb. 01, 2020	Aug. 03, 2019
CONSOLIDATED BALANCE SHEETS
Common Stock, par value (in dollars per share)	$ 0.06775	$ 0.06775	$ 0.06775
Common Stock, shares authorized	350,000	350,000	350,000
Common Stock, shares issued	147,437	146,803	155,199
Common Stock, shares outstanding	147,437	146,803	155,199

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019
Cash flows from operating activities:
Net (loss) income	$ (71,262)	$ 62,238
Adjustments to reconcile net (loss) income to cash (used in) provided by operating activities
Non-cash operating lease expense	161,542	162,861
Depreciation and amortization	64,090	62,730
Share-based compensation	13,188	12,006
Debt issuance costs amortization	1,882	2,539
Loss on write-off of investment		5,036
Accretion of long-term debt, net	131	(262)
Restructure charges		6,956
Impairment of intangible assets	3,500
Deferred income taxes	(2,979)	39
Gain on sale of building	(101)
Losses on early extinguishments of debt and refinancing costs		1,155
Changes in assets and liabilities:
Merchandise inventories	76,027	(148,311)
Prepaid expenses and other	1,566	(10,782)
Accounts receivable	8,384	37,674
Other assets	1,232	(9,391)
Operating lease liabilities	(121,203)	(140,287)
Accounts payable	150,391	44,537
Accrued interest	7,367	(1,045)
Accrued liabilities and other	12,406	(54,843)
Income taxes	(19,953)	(34,327)
Other liabilities	13,541	(631)
Net cash provided by (used in) operating activities	299,749	(2,108)
Cash flows used in investing activities:
Additions to property and equipment	(46,449)	(57,533)
Proceeds from sale of building	875
Net cash used in investing activities	(45,574)	(57,533)
Cash flows from financing activities:
Common stock repurchased	(571)	(27,289)
Payments on term loan credit facility	(12,450)	(12,450)
Payment of 2020 senior subordinated notes		(510,000)
Issuance of 2027 senior notes		500,000
Borrowings on asset-based revolving credit facility	600,000
Payments on asset-based revolving credit facility	(600,000)
Payment of debt refinancing costs		(6,032)
Proceeds from stock options exercised		506
Net cash provided by (used in) financing activities	(13,021)	(55,265)
Net change in cash and equivalents	241,154	(114,906)
Cash and equivalents at beginning of period	409,964	245,887
Cash and equivalents at end of period	651,118	130,981
Supplemental Cash Flow Information:
Cash paid for interest	66,196	76,991
Cash paid for taxes	$ 13,612	$ 54,676

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]	Total
Balance at Feb. 02, 2019	$ 10,594	$ 5,954	$ (1,628,185)	$ (14,558)	$ (1,626,195)
Balance (in shares) at Feb. 02, 2019	157,774
Net (loss) income			62,238		62,238
Foreign currency and cash flow hedges				(9,588)	(9,588)
Share-based compensation		12,758			12,758
Exercise of stock options and other awards	$ 40	466			506
Exercise of stock options and other awards (in shares)	594
Repurchase of stock and retirements	$ (215)	(19,178)	(7,896)		(27,289)
Repurchase of stock and retirements (in shares)	(3,240)
Issuance of restricted stock awards (in shares)	71
Balance at Aug. 03, 2019	$ 10,419		(1,573,843)	(24,146)	$ (1,587,570)
Balance (in shares) at Aug. 03, 2019	155,199				155,199
Balance at May. 04, 2019	$ 10,620	11,900	(1,590,494)	(19,384)	$ (1,587,358)
Balance (in shares) at May. 04, 2019	158,126
Net (loss) income			24,547		24,547
Foreign currency and cash flow hedges				(4,762)	(4,762)
Share-based compensation		5,154			5,154
Exercise of stock options and other awards	$ 2	(2)
Exercise of stock options and other awards (in shares)	39
Repurchase of stock and retirements	$ (203)	(17,052)	(7,896)		(25,151)
Repurchase of stock and retirements (in shares)	(3,011)
Issuance of restricted stock awards (in shares)	45
Balance at Aug. 03, 2019	$ 10,419		(1,573,843)	(24,146)	$ (1,587,570)
Balance (in shares) at Aug. 03, 2019	155,199				155,199
Balance at Feb. 01, 2020	$ 9,852	4,872	(1,438,357)	(22,831)	$ (1,446,464)
Balance (in shares) at Feb. 01, 2020	146,803				146,803
Net (loss) income			(71,262)		$ (71,262)
Foreign currency and cash flow hedges				(5,376)	(5,376)
Share-based compensation		13,790			13,790
Exercise of stock options and other awards	$ 62	(62)
Exercise of stock options and other awards (in shares)	916
Repurchase of stock and retirements	$ (17)	(554)			(571)
Repurchase of stock and retirements (in shares)	(310)
Issuance of restricted stock awards (in shares)	28
Balance at Aug. 01, 2020	$ 9,897	18,046	(1,509,619)	(28,207)	$ (1,509,883)
Balance (in shares) at Aug. 01, 2020	147,437				147,437
Balance at May. 02, 2020	$ 9,890	13,716	(1,501,862)	(37,167)	$ (1,515,423)
Balance (in shares) at May. 02, 2020	147,343
Net (loss) income			(7,757)		(7,757)
Foreign currency and cash flow hedges				8,960	8,960
Share-based compensation		4,507			4,507
Exercise of stock options and other awards	$ 10	(10)
Exercise of stock options and other awards (in shares)	151
Repurchase of stock and retirements	$ (3)	(167)			(170)
Repurchase of stock and retirements (in shares)	(57)
Balance at Aug. 01, 2020	$ 9,897	$ 18,046	$ (1,509,619)	$ (28,207)	$ (1,509,883)
Balance (in shares) at Aug. 01, 2020	147,437				147,437

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
BASIS OF PRESENTATION	Aug. 01, 2020
BASIS OF PRESENTATION
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION All expressions of the “Company”, “us”, “we”, “our”, and all similar expressions are references to The Michaels Companies, Inc. and our consolidated, wholly-owned subsidiaries, unless otherwise expressly stated or the context otherwise requires. Our consolidated financial statements include the accounts of The Michaels Companies, Inc. and our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended February 1, 2020 filed with the Securities and Exchange Commission (“SEC”) pursuant to Section 13 or 15(d) under the Securities Exchange Act of 1934. In the opinion of management, all adjustments (consisting of normal recurring accruals and other items) considered necessary for a fair presentation have been included. We report on the basis of a 52-week or 53-week fiscal year, which ends on the Saturday closest to January 31. All references to fiscal year mean the year in which that fiscal year began. References to “fiscal 2020” relate to the 52 weeks ending January 30, 2021 and references to “fiscal 2019” relate to the 52 weeks ended February 1, 2020. In addition, all references to “the second quarter of fiscal 2020” relate to the 13 weeks ended August 1, 2020 and all references to “the second quarter of fiscal 2019” relate to the 13 weeks ended August 3, 2019. Finally, all references to “the six months ended August 1, 2020” relate to the 26 weeks ended August 1, 2020 and all references to “the six months ended August 3, 2019” relate to the 26 weeks ended August 3, 2019. The results of operations for the 13 and 26 weeks ended August 1, 2020 are not indicative of the results to be expected for the entire year due to the seasonal nature of our business and the financial impact of the COVID-19 pandemic. COVID-19 Pandemic In March 2020, the World Health Organization declared the current COVID-19 outbreak to be a global pandemic. In response to the pandemic, many state and local jurisdictions ordered non-essential businesses closed and executed extensive stay-at-home orders. These orders resulted in the temporary closure of over 900 of our 1,275 stores which had a material adverse impact on our results of operations during the first quarter of fiscal 2020. During the second quarter of fiscal 2020, we reopened all of our stores and experienced a significant improvement in our business as net sales increased 11.1% compared to the same period in the prior year. Our liquidity position, which includes cash on hand and amounts available under our senior secured asset-based revolving credit facility (“Amended Revolving Credit Facility”), increased from $1.1 billion as of May 2, 2020 to $1.3 billion as of August 1, 2020. In addition, there were no amounts outstanding under our Amended Revolving Credit Facility as of the end of the second quarter of fiscal 2020. However, there remains significant uncertainty surrounding the future impact of the COVID-19 pandemic on our results of operations, and future waves of the pandemic could require us to close stores again if certain restrictions are reinstated by state and local authorities. We intend to continue to manage our liquidity position closely and invest in our omnichannel capabilities to meet the growing customer demand for a seamless omnichannel experience. Share Repurchase Program In September 2018, the Board of Directors authorized a new share repurchase program for the Company to purchase $500 million of the Company’s common stock on the open market or through accelerated share repurchase transactions. The share repurchase program does not have an expiration date, and the timing and number of repurchase transactions under the program will depend on market conditions, corporate considerations, debt agreements and regulatory requirements. Shares repurchased under the program are held as treasury shares until retired. During the six months ended August 1, 2020, we did not repurchase any shares under our share repurchase program. As of August 1, 2020, we had $293.5 million of availability remaining under our current share repurchase program. Darice Liquidation and Restructure Charges In May 2020, the Company adopted a plan to close the Darice wholesale operations (“Darice”). As a result of the closure, we recorded a charge totaling $52.5 million in the second quarter of fiscal 2020, consisting primarily of a $45.5 million charge in gross profit related to the liquidation of inventory and $7.0 million included in selling, general and administrative associated with the write-off of indefinite-lived intangible assets and employee-related expenses. We expect the closure process to be substantially completed by November 30, 2020 and the fiscal 2020 pre-tax cost to be approximately $58 million to $62 million. In the first six months of fiscal 2020 and fiscal 2019, Darice’s net sales totaled $26.4 million and $40.1 million, respectively. Excluding the charges, Darice did not have a material impact on the Company’s operating income in the periods presented. In the fourth quarter of fiscal 2018, we closed all of our Pat Catan’s stores. As a result of the closures, we recorded a charge totaling $7.0 million in the first six months of fiscal 2019, primarily related to employee-related expenses and the impairment of an indefinite-lived intangible asset. Accounting Pronouncements Recently Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “ Financial Instruments - Credit Losses (Topic 326) In December 2019, the FASB issued ASU 2019-12, “ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Recent Accounting Pronouncement Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting .

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
FAIR VALUE MEASUREMENTS	Aug. 01, 2020
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	2. FAIR VALUE MEASUREMENTS Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Accounting Standards Codification 820 establishes a three-level valuation hierarchy for fair value measurements. These valuation techniques are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect less transparent active market data, as well as internal assumptions. These two types of inputs create the following fair value hierarchy: ● Level 1—Quoted prices for identical instruments in active markets; ● Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose significant inputs are observable; and ● Level 3—Instruments with significant unobservable inputs. Impairment losses related to property and equipment are calculated using significant unobservable inputs including the present value of future cash flows expected to be generated using a risk-adjusted weighted-average cost of capital and comparable store sales growth assumptions, and therefore, are classified as a Level 3 measurement in the fair value hierarchy. Impairment losses related to store-level operating lease assets are calculated using rent per square foot derived from observable market data, and therefore, are classified as a Level 2 measurement in the fair value hierarchy. Impairment losses related to goodwill and other indefinite-lived intangible assets are calculated based on the estimated fair value of each reporting unit, which is determined using significant unobservable inputs including the present value of future cash flows expected to be generated by the reporting unit using a weighted-average cost of capital, terminal values and updated financial projections for the next five years and are classified as Level 3 measurements in the fair value hierarchy. Due to the impact of COVID-19, we performed an interim impairment assessment of goodwill and other long-lived assets as of May 2, 2020, which included estimated future cash flow assumptions incorporating the impact of our temporary store closures. Due to the uncertainty around COVID-19, our projected future cash flows may differ materially from actual results. There were no material impairment losses identified as a result of this assessment. The carrying value of cash and cash equivalents, accounts receivable and accounts payable approximates their estimated fair values due to the short maturities of these instruments. The table below provides the fair values of our senior secured term loan facility (“Amended and Restated Term Loan Credit Facility”), our 8% senior notes maturing in 2027 (“2027 Senior Notes”) and our cash flow hedges. August 1, February 1, August 3, 2020 2020 2019 (in thousands) Liabilities Term loan credit facility $ 2,072,446 $ 2,119,802 $ 2,125,045 Senior notes 473,140 449,675 481,525 Short-term portion of cash flow hedges 15,440 13,007 9,679 Long-term portion of cash flow hedges 5,948 3,555 8,902 The fair values of our Amended and Restated Term Loan Credit Facility and our 2027 Senior Notes were determined based on quoted market prices which are considered Level 1 inputs within the fair value hierarchy. The fair value of our cash flow hedges were calculated using significant observable inputs including the present value of estimated future cash flows using the applicable interest rate curves and, therefore, were classified as Level 2 inputs within the fair value hierarchy. The short-term and long-term portions of our cash flow hedges are recorded in accrued liabilities and other liabilities, respectively, in our consolidated balance sheets.

REVENUE RECOGNITION

REVENUE RECOGNITION	6 Months Ended
REVENUE RECOGNITION	Aug. 01, 2020
REVENUE RECOGNITION
REVENUE RECOGNITION	3. REVENUE RECOGNITION Our revenue is primarily associated with sales of merchandise to customers within our stores, customers utilizing our e-commerce platforms and through Darice. Revenue from sales of our merchandise is recognized when the customer takes possession of the merchandise. Payment for our retail sales is typically due at the time of the sale. Customer Receivables As of August 1, 2020, February 1, 2020 and August 3, 2019, receivables from customers, which consist primarily of trade receivables related to Darice, were approximately $4.4 million, $13.3 million and $15.4 million, respectively, and are included in accounts receivable, net in the consolidated balance sheets. Gift Cards The gift card liability is included in accrued liabilities and other in the consolidated balance sheets. The following table includes activity related to gift cards (in thousands): 13 Weeks Ended 26 Weeks Ended August 1, August 3, August 1, August 3, 2020 2019 2020 2019 Balance at beginning of period $ 59,658 $ 55,708 $ 64,130 $ 61,071 Issuance of gift cards 11,405 13,140 18,310 24,465 Revenue recognized (1) (11,619) (13,668) (22,218) (29,415) Gift card breakage 679 584 (99) (357) Balance at end of period $ 60,123 $ 55,764 $ 60,123 $ 55,764 (1) Revenue recognized from the beginning liability during the second quarters of fiscal 2020 and fiscal 2019 totaled $6.4 million and $7.5 million, respectively. Revenue recognized from the beginning liability during the first six months of fiscal 2020 and fiscal 2019 totaled $12.4 million and $15.8 million, respectively.

LEASES

LEASES	6 Months Ended
LEASES	Aug. 01, 2020
LEASES
LEASES	4. LEASES We lease our retail store locations, distribution centers, office facilities and certain equipment under non-cancelable operating leases. Substantially all store leases have initial lease terms of approximately 10 years, the majority of which provide for one or more five-year renewal options. The exercise of lease renewal options is at the Company’s sole discretion. We include the lease renewal option periods Our operating lease assets represent our right to use an underlying asset for the lease term and our operating lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The commencement date is the earlier of the date when we become legally obligated for the rent payments or the date when we take possession of the building for construction purposes. In addition, operating lease assets are net of lease incentives received. As our leases do not contain an implicit rate of return, we use our estimated incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. For operating leases that commenced prior to the adoption date of the new lease accounting standard, we used the incremental borrowing rate as of the adoption date. Lease expense for lease payments is recognized on a straight-line basis over the lease term. In fiscal 2020, we began negotiating certain rent concessions with our landlords, which consists primarily of rent abatements, to mitigate the economic effects of the COVID-19 pandemic. As of August 1, 2020, we received approximately $12 million in rent abatements that are included in our straight-line rent calculation. We have lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. Our short-term non-real estate leases, which have a non-cancelable lease term of less than one year, are not included in the operating lease assets or liabilities. Short-term lease expense is recognized on a straight-line basis over the lease term. The components of lease costs are as follows (in thousands): 13 Weeks Ended 26 Weeks Ended August 1, August 3, August 1, August 3, 2020 2019 2020 2019 Operating lease cost (1) $ 107,197 $ 104,600 $ 213,628 $ 210,065 Variable lease cost (2) 38,127 36,077 77,571 72,517 Total lease cost $ 145,324 $ 140,677 $ 291,199 $ 282,582 (1) Includes an immaterial amount related to short-term non-real estate leases. (2) Includes taxes, insurance and common areas maintenance costs for our leased facilities which are paid based on actual cost incurred by the lessor. Also includes contingent rent which is immaterial in the periods presented. Additional information related to our operating leases is as follows (in thousands, except weighted-average data): 26 Weeks Ended August 1, August 3, 2020 2019 Operating cash outflows included in the measurement of lease liabilities $ 174,760 $ 214,439 Operating lease assets obtained in exchange for new operating lease liabilities $ 115,060 $ 133,137 Weighted-average remaining lease term 5.9 years 6.2 years Weighted-average discount rate 6.7% 5.6% Maturities of our lease liabilities are as follows as of August 1, 2020 (in thousands): Fiscal Year 2020 $ 214,922 2021 412,898 2022 357,340 2023 294,707 2024 231,024 Thereafter 501,488 Total lease payments $ 2,012,379 Less: Interest (365,536) Present value of lease liabilities $ 1,646,843 Lease payments exclude $57.4 million related to 17 leases that have been signed as of August 1, 2020 but have not yet commenced.

DEBT

DEBT	6 Months Ended
DEBT	Aug. 01, 2020
DEBT
DEBT	5. DEBT Long-term debt consists of the following (in thousands): August 1, February 1, August 3, Interest Rate 2020 2020 2019 Term loan credit facility Variable $ 2,170,100 $ 2,182,550 $ 2,195,000 Senior notes 8.00 % 500,000 500,000 500,000 Total debt 2,670,100 2,682,550 2,695,000 Less unamortized discount and debt costs (11,557) (13,190) (14,709) Total debt, net 2,658,543 2,669,360 2,680,291 Less current portion (24,900) (24,900) (24,900) Long-term debt $ 2,633,643 $ 2,644,460 $ 2,655,391 Revolving Credit Facility As of August 1, 2020 and August 3, 2019, the borrowing base under our Amended Revolving Credit Facility was $689.9 million and $789.3 million, respectively, of which Michaels Stores, Inc. (“MSI”) had unused borrowing capacity of $601.7 million and $686.1 million, respectively. As of August 1, 2020 and August 3, 2019, outstanding standby letters of credit, which reduce our borrowing base, totaled $88.2 million and $103.2 million, respectively. As a result of the COVID-19 pandemic, we borrowed $600.0 million under our Amended Revolving Credit Facility in the first quarter of fiscal 2020 to improve our cash position and preserve financial flexibility. In the second quarter of fiscal 2020, all amounts outstanding under the credit facility were repaid with available cash on hand. Interest Rate Swaps In April 2018, we executed two interest rate swaps with an aggregate notional value of $1 billion associated with our outstanding Amended and Restated Term Loan Credit Facility. The interest rate swaps have a maturity date of April 30, 2021 and were executed for risk management and are not held for trading purposes. The objective of the interest rate swaps is to hedge the variability of cash flows resulting from fluctuations in the one-month LIBOR. The swaps replaced the one-month LIBOR with a fixed interest rate of 2.7765% and payments are settled monthly. The swaps qualify as cash flow hedges and changes in the fair values are recorded in accumulated other comprehensive income in the consolidated balance sheet. The changes in fair value are reclassified from accumulated other comprehensive income to interest expense in the same period that the hedged items affect earnings. Amounts reclassified from accumulated other comprehensive income to interest expense during the second quarters of fiscal 2020 and fiscal 2019 were $4.5 million and $0.9 million, respectively. Amounts reclassified from accumulated other comprehensive income to interest expense during the six months ended August 1, 2020 and August 3, 2019 were $8.0 million and $1.6 million, respectively. Interest Rate Caps In April 2020, we executed two interest rate cap agreements with an aggregate notional value of $2 billion associated with our outstanding Amended and Restated Term Loan Credit Facility. The interest rate caps have an effective date of September 30, 2020 and April 30, 2021, respectively. The interest rate caps have a maturity date of April 30, 2025 and were executed for risk management and are not held for trading purposes. The interest rate caps will effectively cap our LIBOR exposure on a portion of our Amended and Restated Term Loan Credit Facility at 1%. The interest rate caps qualify as cash flow hedges and changes in the fair values are recorded in accumulated other comprehensive income in the consolidated balance sheet. The changes in fair value are reclassified from accumulated other comprehensive income to interest expense in the same period that the hedged items affect earnings. There were no amounts reclassified from accumulated comprehensive income to interest expense during the periods presented.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE LOSS	6 Months Ended
ACCUMULATED OTHER COMPREHENSIVE LOSS	Aug. 01, 2020
ACCUMULATED OTHER COMPREHENSIVE LOSS
ACCUMULATED OTHER COMPREHENSIVE LOSS	6. ACCUMULATED OTHER COMPREHENSIVE LOSS The following table includes detail regarding changes in the composition of accumulated other comprehensive loss (in thousands): 13 Weeks Ended 26 Weeks Ended August 1, August 3, August 1, August 3, 2020 2019 2020 2019 Beginning of period $ (37,167) $ (19,384) $ (22,831) $ (14,558) Foreign currency translation 7,540 2,259 (1,804) (549) Cash flow hedges 1,420 (7,021) (3,572) (9,039) End of period $ (28,207) $ (24,146) $ (28,207) $ (24,146)

INCOME TAXES

INCOME TAXES	6 Months Ended
INCOME TAXES	Aug. 01, 2020
INCOME TAXES
INCOME TAXES	7. INCOME TAXES Income tax expense increased $17.2 million for the second quarter of fiscal 2020 to $22.9 million compared to the same period in the prior year. The increase was due primarily to the cumulative impact of a change in estimated net operating losses and the related carryback provisions associated with the Coronavirus Aid, Relief, and Economic Security Act in the second quarter of fiscal 2020 and a tax benefit associated with a state income tax settlement in the second quarter of fiscal 2019. Income taxes decreased $29.7 million for the first six months of fiscal 2020 to a $9.4 million benefit compared to the first six months of fiscal 2019. The decrease was primarily due to operating losses incurred during the first half of fiscal 2020, partially offset by the tax benefit associated with a state income tax settlement in fiscal 2019.

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE	6 Months Ended
EARNINGS (LOSS) PER SHARE	Aug. 01, 2020
EARNINGS (LOSS) PER SHARE
EARNINGS PER SHARE	8. EARNINGS (LOSS) PER SHARE The Company’s unvested restricted stock awards contain non-forfeitable rights to dividends and meet the criteria of a participating security as defined by ASC 260, “ Earnings Per Share The following table sets forth the computation of basic and diluted (loss) earnings per common share (in thousands, except per share data): 13 Weeks Ended 26 Weeks Ended August 1, August 3, August 1, August 3, 2020 2019 2020 2019 Basic (loss) earnings per common share: Net (loss) income $ (7,757) $ 24,547 $ (71,262) $ 62,238 Less income related to unvested restricted shares — (29) — (68) (Loss) income available to common shareholders - Basic $ (7,757) $ 24,518 $ (71,262) $ 62,170 Weighted-average common shares outstanding - Basic 147,296 157,272 147,080 157,511 Basic (loss) earnings per common share $ (0.05) $ 0.16 $ (0.48) $ 0.39 Diluted (loss) earnings per common share: Net (loss) income $ (7,757) $ 24,547 $ (71,262) $ 62,238 Less income related to unvested restricted shares — (29) — (68) (Loss) income available to common shareholders - Diluted $ (7,757) $ 24,518 $ (71,262) $ 62,170 Weighted-average common shares outstanding - Basic 147,296 157,272 147,080 157,511 Effect of dilutive stock options and restricted stock units — 1 — 24 Weighted-average common shares outstanding - Diluted 147,296 157,273 147,080 157,535 Diluted (loss) earnings per common share $ (0.05) $ 0.16 $ (0.48) $ 0.39

SEGMENTS AND GEOGRAPHIC INFORMA

SEGMENTS AND GEOGRAPHIC INFORMATION	6 Months Ended
SEGMENTS AND GEOGRAPHIC INFORMATION	Aug. 01, 2020
SEGMENTS AND GEOGRAPHIC INFORMATION
SEGMENTS AND GEOGRAPHIC INFORMATION	9. SEGMENTS AND GEOGRAPHIC INFORMATION We consider Michaels-U.S., Michaels-Canada, and Darice to be our operating segments for purposes of determining reportable segments based on the criteria of ASC 280, Segment Reporting Our net sales by country are as follows (in thousands): 13 Weeks Ended 26 Weeks Ended August 1, August 3, August 1, August 3, 2020 2019 2020 2019 United States $ 1,037,294 $ 939,036 $ 1,762,233 $ 1,933,136 Canada 110,876 94,653 185,825 194,272 Total $ 1,148,170 $ 1,033,689 $ 1,948,058 $ 2,127,408

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
RELATED PARTY TRANSACTIONS	Aug. 01, 2020
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	10. RELATED PARTY TRANSACTIONS Affiliates of, or funds advised by, The Blackstone Group, Inc. owned approximately 14% of our outstanding common stock as of August 1, 2020. Affiliates of The Blackstone Group, Inc. also held $4.9 million of our Amended and Restated Term Loan Credit Facility as of August 1, 2020. The Blackstone Group, Inc. owns a majority equity position in ShopCore Properties, LP, Blackstone Real Estate DDR Retail Holdings III, LLC and Blackstone Real Estate RC Retail Holdings, LLC and has significant influence over Edens Limited Partnership, all of which are vendors we utilize to lease certain properties. Payments associated with these vendors during the second quarters of fiscal 2020 and fiscal 2019 were $2.5 million and $2.3 million, respectively. Payments made during the six months ended August 1, 2020 and August 3, 2019 were $4.5 million and $5.0 million, respectively. These expenses are included in cost of sales and occupancy expense in the consolidated statements of comprehensive income. The Blackstone Group, Inc. has significant influence over JDA Software Group, Inc., a vendor we utilize for transportation and supply chain software. Payments associated with this vendor during the second quarters of fiscal 2020 and fiscal 2019 were $0.4 million and $0.8 million, respectively. Payments made during the six months ended August 1, 2020 and August 3, 2019 were $0.9 million and $1.5 million, respectively. These expenses are included in selling, general and administrative in the consolidated statements of comprehensive income.

CONDENSED CONSOLIDATED FINANCIA

CONDENSED CONSOLIDATED FINANCIAL INFORMATION	6 Months Ended
CONDENSED CONSOLIDATED FINANCIAL INFORMATION	Aug. 01, 2020
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION	11. CONDENSED CONSOLIDATED FINANCIAL INFORMATION Our debt covenants restrict MSI, and certain subsidiaries of MSI, from various activities including the incurrence of additional debt, payment of dividends and the repurchase of MSI’s capital stock (subject to certain exceptions), among other things. The following condensed consolidated financial information represents the financial information of MSI and its wholly-owned subsidiaries subject to these restrictions. The information is presented in accordance with the requirements of Rule 12-04 under the SEC’s Regulation S-X. Michaels Stores, Inc. Condensed Consolidated Balance Sheets (in thousands) August 1, February 1, August 3, ASSETS 2020 2020 2019 Current assets: Cash and equivalents $ 650,324 $ 409,173 $ 130,194 Merchandise inventories 1,021,691 1,097,109 1,256,465 Prepaid expenses and other current assets 91,706 92,601 93,549 Total current assets 1,763,721 1,598,883 1,480,208 Property and equipment, net 412,263 430,432 437,491 Operating lease assets 1,552,626 1,610,013 1,611,029 Goodwill 94,290 94,290 112,069 Other intangible assets, net 59,839 66,417 14,082 Other assets 39,768 37,146 51,427 Total assets $ 3,922,507 $ 3,837,181 $ 3,706,306 LIABILITIES AND STOCKHOLDERS’ DEFICIT Current liabilities: Accounts payable $ 627,619 $ 476,298 $ 533,473 Accrued liabilities and other 367,681 346,657 321,473 Current portion of operating lease liabilities 329,465 306,796 298,993 Current portion of long-term debt 24,900 24,900 24,900 Income taxes payable 29,141 41,236 11,974 Total current liabilities 1,378,806 1,195,887 1,190,813 Long-term debt 2,633,643 2,644,460 2,655,391 Long-term operating lease liabilities 1,317,378 1,357,821 1,377,039 Other liabilities 157,729 141,582 127,800 Total stockholders’ deficit (1,565,049) (1,502,569) (1,644,737) Total liabilities and stockholders’ deficit $ 3,922,507 $ 3,837,181 $ 3,706,306 Michaels Stores, Inc. Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands) 13 Weeks Ended 26 Weeks Ended August 1, August 3, August 1, August 3, 2020 2019 2020 2019 Net sales $ 1,148,170 $ 1,033,689 $ 1,948,058 $ 2,127,408 Cost of sales and occupancy expense 805,658 666,703 1,383,724 1,342,783 Gross profit 342,512 366,986 564,334 784,625 Selling, general and administrative 288,803 289,827 569,908 610,214 Restructure charges — 3,869 — 6,956 Store pre-opening costs 186 1,743 1,345 2,969 Operating income (loss) 53,523 71,547 (6,919) 164,486 Interest and other expense, net 38,106 39,886 73,307 80,355 Losses on early extinguishment of debt and refinancing costs — 1,155 — 1,155 Income (loss) before income taxes 15,417 30,506 (80,226) 82,976 Income taxes 22,985 5,774 (9,332) 20,398 Net (loss) income $ (7,568) $ 24,732 $ (70,894) $ 62,578 Other comprehensive income (loss), net of tax: Foreign currency and cash flow hedges 8,960 (4,762) (5,376) (9,588) Comprehensive income (loss) $ 1,392 $ 19,970 $ (76,270) $ 52,990 Michaels Stores, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) 26 Weeks Ended August 1, August 3, 2020 2019 Cash flows from operating activities: Net cash provided by (used in) operating activities $ 299,175 $ (3,839) Cash flows from investing activities: Additions to property and equipment (46,449) (57,533) Proceeds from sale of building 875 — Net cash used in investing activities (45,574) (57,533) Cash flows from financing activities: Net repayments of debt (612,450) (522,450) Net borrowings of debt 600,000 500,000 Payment of debt refinancing costs — (6,032) Payment of dividend to Michaels Funding, Inc. — (25,060) Net cash used in financing activities (12,450) (53,542) Net change in cash and equivalents 241,151 (114,914) Cash and equivalents at beginning of period 409,173 245,108 Cash and equivalents at end of period $ 650,324 $ 130,194

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
BASIS OF PRESENTATION (Policies)	Aug. 01, 2020
BASIS OF PRESENTATION
COVID-19 Pandemic	COVID-19 Pandemic In March 2020, the World Health Organization declared the current COVID-19 outbreak to be a global pandemic. In response to the pandemic, many state and local jurisdictions ordered non-essential businesses closed and executed extensive stay-at-home orders. These orders resulted in the temporary closure of over 900 of our 1,275 stores which had a material adverse impact on our results of operations during the first quarter of fiscal 2020. During the second quarter of fiscal 2020, we reopened all of our stores and experienced a significant improvement in our business as net sales increased 11.1% compared to the same period in the prior year. Our liquidity position, which includes cash on hand and amounts available under our senior secured asset-based revolving credit facility (“Amended Revolving Credit Facility”), increased from $1.1 billion as of May 2, 2020 to $1.3 billion as of August 1, 2020. In addition, there were no amounts outstanding under our Amended Revolving Credit Facility as of the end of the second quarter of fiscal 2020. However, there remains significant uncertainty surrounding the future impact of the COVID-19 pandemic on our results of operations, and future waves of the pandemic could require us to close stores again if certain restrictions are reinstated by state and local authorities. We intend to continue to manage our liquidity position closely and invest in our omnichannel capabilities to meet the growing customer demand for a seamless omnichannel experience.
Share Repurchase Program	Share Repurchase Program In September 2018, the Board of Directors authorized a new share repurchase program for the Company to purchase $500 million of the Company’s common stock on the open market or through accelerated share repurchase transactions. The share repurchase program does not have an expiration date, and the timing and number of repurchase transactions under the program will depend on market conditions, corporate considerations, debt agreements and regulatory requirements. Shares repurchased under the program are held as treasury shares until retired. During the six months ended August 1, 2020, we did not repurchase any shares under our share repurchase program. As of August 1, 2020, we had $293.5 million of availability remaining under our current share repurchase program.
Darice Liquidation and Restructure Charges	Darice Liquidation and Restructure Charges In May 2020, the Company adopted a plan to close the Darice wholesale operations (“Darice”). As a result of the closure, we recorded a charge totaling $52.5 million in the second quarter of fiscal 2020, consisting primarily of a $45.5 million charge in gross profit related to the liquidation of inventory and $7.0 million included in selling, general and administrative associated with the write-off of indefinite-lived intangible assets and employee-related expenses. We expect the closure process to be substantially completed by November 30, 2020 and the fiscal 2020 pre-tax cost to be approximately $58 million to $62 million. In the first six months of fiscal 2020 and fiscal 2019, Darice’s net sales totaled $26.4 million and $40.1 million, respectively. Excluding the charges, Darice did not have a material impact on the Company’s operating income in the periods presented. In the fourth quarter of fiscal 2018, we closed all of our Pat Catan’s stores. As a result of the closures, we recorded a charge totaling $7.0 million in the first six months of fiscal 2019, primarily related to employee-related expenses and the impairment of an indefinite-lived intangible asset.
Accounting Pronouncements Recently Adopted / Recent Accounting Pronouncement Not Yet Adopted	Accounting Pronouncements Recently Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “ Financial Instruments - Credit Losses (Topic 326) In December 2019, the FASB issued ASU 2019-12, “ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Recent Accounting Pronouncement Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting .

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
FAIR VALUE MEASUREMENTS (Tables)	Aug. 01, 2020
FAIR VALUE MEASUREMENTS
Schedule of Fair Values of Debt and Interest Rate Swaps	The table below provides the fair values of our senior secured term loan facility (“Amended and Restated Term Loan Credit Facility”), our 8% senior notes maturing in 2027 (“2027 Senior Notes”) and our cash flow hedges. August 1, February 1, August 3, 2020 2020 2019 (in thousands) Liabilities Term loan credit facility $ 2,072,446 $ 2,119,802 $ 2,125,045 Senior notes 473,140 449,675 481,525 Short-term portion of cash flow hedges 15,440 13,007 9,679 Long-term portion of cash flow hedges 5,948 3,555 8,902

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	6 Months Ended
REVENUE RECOGNITION (Tables)	Aug. 01, 2020
REVENUE RECOGNITION
Schedule of Gift Card Liability	The gift card liability is included in accrued liabilities and other in the consolidated balance sheets. The following table includes activity related to gift cards (in thousands): 13 Weeks Ended 26 Weeks Ended August 1, August 3, August 1, August 3, 2020 2019 2020 2019 Balance at beginning of period $ 59,658 $ 55,708 $ 64,130 $ 61,071 Issuance of gift cards 11,405 13,140 18,310 24,465 Revenue recognized (1) (11,619) (13,668) (22,218) (29,415) Gift card breakage 679 584 (99) (357) Balance at end of period $ 60,123 $ 55,764 $ 60,123 $ 55,764 (1) Revenue recognized from the beginning liability during the second quarters of fiscal 2020 and fiscal 2019 totaled $6.4 million and $7.5 million, respectively. Revenue recognized from the beginning liability during the first six months of fiscal 2020 and fiscal 2019 totaled $12.4 million and $15.8 million, respectively.

LEASES (Tables)

LEASES (Tables)	6 Months Ended
LEASES (Tables)	Aug. 01, 2020
LEASES
Components of Lease Costs	The components of lease costs are as follows (in thousands): 13 Weeks Ended 26 Weeks Ended August 1, August 3, August 1, August 3, 2020 2019 2020 2019 Operating lease cost (1) $ 107,197 $ 104,600 $ 213,628 $ 210,065 Variable lease cost (2) 38,127 36,077 77,571 72,517 Total lease cost $ 145,324 $ 140,677 $ 291,199 $ 282,582 (1) Includes an immaterial amount related to short-term non-real estate leases. (2) Includes taxes, insurance and common areas maintenance costs for our leased facilities which are paid based on actual cost incurred by the lessor. Also includes contingent rent which is immaterial in the periods presented.
Operating Leases, Supplemental Cash Flow Information	Additional information related to our operating leases is as follows (in thousands, except weighted-average data): 26 Weeks Ended August 1, August 3, 2020 2019 Operating cash outflows included in the measurement of lease liabilities $ 174,760 $ 214,439 Operating lease assets obtained in exchange for new operating lease liabilities $ 115,060 $ 133,137 Weighted-average remaining lease term 5.9 years 6.2 years Weighted-average discount rate 6.7% 5.6%
Maturities of Lease Liabilities	Maturities of our lease liabilities are as follows as of August 1, 2020 (in thousands): Fiscal Year 2020 $ 214,922 2021 412,898 2022 357,340 2023 294,707 2024 231,024 Thereafter 501,488 Total lease payments $ 2,012,379 Less: Interest (365,536) Present value of lease liabilities $ 1,646,843

DEBT (Tables)

DEBT (Tables)	6 Months Ended
DEBT (Tables)	Aug. 01, 2020
DEBT
Schedule of outstanding debt	Long-term debt consists of the following (in thousands): August 1, February 1, August 3, Interest Rate 2020 2020 2019 Term loan credit facility Variable $ 2,170,100 $ 2,182,550 $ 2,195,000 Senior notes 8.00 % 500,000 500,000 500,000 Total debt 2,670,100 2,682,550 2,695,000 Less unamortized discount and debt costs (11,557) (13,190) (14,709) Total debt, net 2,658,543 2,669,360 2,680,291 Less current portion (24,900) (24,900) (24,900) Long-term debt $ 2,633,643 $ 2,644,460 $ 2,655,391

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)	6 Months Ended
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)	Aug. 01, 2020
ACCUMULATED OTHER COMPREHENSIVE LOSS
Schedule of accumulated other comprehensive loss	The following table includes detail regarding changes in the composition of accumulated other comprehensive loss (in thousands): 13 Weeks Ended 26 Weeks Ended August 1, August 3, August 1, August 3, 2020 2019 2020 2019 Beginning of period $ (37,167) $ (19,384) $ (22,831) $ (14,558) Foreign currency translation 7,540 2,259 (1,804) (549) Cash flow hedges 1,420 (7,021) (3,572) (9,039) End of period $ (28,207) $ (24,146) $ (28,207) $ (24,146)

EARNINGS (LOSS) PER SHARE (Tabl

EARNINGS (LOSS) PER SHARE (Tables)	6 Months Ended
EARNINGS (LOSS) PER SHARE (Tables)	Aug. 01, 2020
EARNINGS (LOSS) PER SHARE
Schedule of calculation of basic and diluted earnings per share	The following table sets forth the computation of basic and diluted (loss) earnings per common share (in thousands, except per share data): 13 Weeks Ended 26 Weeks Ended August 1, August 3, August 1, August 3, 2020 2019 2020 2019 Basic (loss) earnings per common share: Net (loss) income $ (7,757) $ 24,547 $ (71,262) $ 62,238 Less income related to unvested restricted shares — (29) — (68) (Loss) income available to common shareholders - Basic $ (7,757) $ 24,518 $ (71,262) $ 62,170 Weighted-average common shares outstanding - Basic 147,296 157,272 147,080 157,511 Basic (loss) earnings per common share $ (0.05) $ 0.16 $ (0.48) $ 0.39 Diluted (loss) earnings per common share: Net (loss) income $ (7,757) $ 24,547 $ (71,262) $ 62,238 Less income related to unvested restricted shares — (29) — (68) (Loss) income available to common shareholders - Diluted $ (7,757) $ 24,518 $ (71,262) $ 62,170 Weighted-average common shares outstanding - Basic 147,296 157,272 147,080 157,511 Effect of dilutive stock options and restricted stock units — 1 — 24 Weighted-average common shares outstanding - Diluted 147,296 157,273 147,080 157,535 Diluted (loss) earnings per common share $ (0.05) $ 0.16 $ (0.48) $ 0.39

SEGMENTS AND GEOGRAPHIC INFOR_2

SEGMENTS AND GEOGRAPHIC INFORMATION (Tables)	6 Months Ended
SEGMENTS AND GEOGRAPHIC INFORMATION (Tables)	Aug. 01, 2020
SEGMENTS AND GEOGRAPHIC INFORMATION
Schedule of net sales by country	Our net sales by country are as follows (in thousands): 13 Weeks Ended 26 Weeks Ended August 1, August 3, August 1, August 3, 2020 2019 2020 2019 United States $ 1,037,294 $ 939,036 $ 1,762,233 $ 1,933,136 Canada 110,876 94,653 185,825 194,272 Total $ 1,148,170 $ 1,033,689 $ 1,948,058 $ 2,127,408

CONDENSED CONSOLIDATED FINANC_2

CONDENSED CONSOLIDATED FINANCIAL INFORMATION (Tables)	6 Months Ended
CONDENSED CONSOLIDATED FINANCIAL INFORMATION (Tables)	Aug. 01, 2020
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
Schedule of Condensed Consolidated Balance Sheets	Michaels Stores, Inc. Condensed Consolidated Balance Sheets (in thousands) August 1, February 1, August 3, ASSETS 2020 2020 2019 Current assets: Cash and equivalents $ 650,324 $ 409,173 $ 130,194 Merchandise inventories 1,021,691 1,097,109 1,256,465 Prepaid expenses and other current assets 91,706 92,601 93,549 Total current assets 1,763,721 1,598,883 1,480,208 Property and equipment, net 412,263 430,432 437,491 Operating lease assets 1,552,626 1,610,013 1,611,029 Goodwill 94,290 94,290 112,069 Other intangible assets, net 59,839 66,417 14,082 Other assets 39,768 37,146 51,427 Total assets $ 3,922,507 $ 3,837,181 $ 3,706,306 LIABILITIES AND STOCKHOLDERS’ DEFICIT Current liabilities: Accounts payable $ 627,619 $ 476,298 $ 533,473 Accrued liabilities and other 367,681 346,657 321,473 Current portion of operating lease liabilities 329,465 306,796 298,993 Current portion of long-term debt 24,900 24,900 24,900 Income taxes payable 29,141 41,236 11,974 Total current liabilities 1,378,806 1,195,887 1,190,813 Long-term debt 2,633,643 2,644,460 2,655,391 Long-term operating lease liabilities 1,317,378 1,357,821 1,377,039 Other liabilities 157,729 141,582 127,800 Total stockholders’ deficit (1,565,049) (1,502,569) (1,644,737) Total liabilities and stockholders’ deficit $ 3,922,507 $ 3,837,181 $ 3,706,306
Schedule of Condensed Consolidated Statements of Comprehensive (Loss) Income	Michaels Stores, Inc. Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands) 13 Weeks Ended 26 Weeks Ended August 1, August 3, August 1, August 3, 2020 2019 2020 2019 Net sales $ 1,148,170 $ 1,033,689 $ 1,948,058 $ 2,127,408 Cost of sales and occupancy expense 805,658 666,703 1,383,724 1,342,783 Gross profit 342,512 366,986 564,334 784,625 Selling, general and administrative 288,803 289,827 569,908 610,214 Restructure charges — 3,869 — 6,956 Store pre-opening costs 186 1,743 1,345 2,969 Operating income (loss) 53,523 71,547 (6,919) 164,486 Interest and other expense, net 38,106 39,886 73,307 80,355 Losses on early extinguishment of debt and refinancing costs — 1,155 — 1,155 Income (loss) before income taxes 15,417 30,506 (80,226) 82,976 Income taxes 22,985 5,774 (9,332) 20,398 Net (loss) income $ (7,568) $ 24,732 $ (70,894) $ 62,578 Other comprehensive income (loss), net of tax: Foreign currency and cash flow hedges 8,960 (4,762) (5,376) (9,588) Comprehensive income (loss) $ 1,392 $ 19,970 $ (76,270) $ 52,990
Schedule of Condensed Consolidated Statements of Cash Flows	Michaels Stores, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) 26 Weeks Ended August 1, August 3, 2020 2019 Cash flows from operating activities: Net cash provided by (used in) operating activities $ 299,175 $ (3,839) Cash flows from investing activities: Additions to property and equipment (46,449) (57,533) Proceeds from sale of building 875 — Net cash used in investing activities (45,574) (57,533) Cash flows from financing activities: Net repayments of debt (612,450) (522,450) Net borrowings of debt 600,000 500,000 Payment of debt refinancing costs — (6,032) Payment of dividend to Michaels Funding, Inc. — (25,060) Net cash used in financing activities (12,450) (53,542) Net change in cash and equivalents 241,151 (114,914) Cash and equivalents at beginning of period 409,173 245,108 Cash and equivalents at end of period $ 650,324 $ 130,194

BASIS OF PRESENTATION (Fiscal Y

BASIS OF PRESENTATION (Fiscal Year and Description) (Narrative) (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Aug. 01, 2020	Aug. 03, 2019	Aug. 01, 2020	Aug. 03, 2019	Jan. 30, 2021	Feb. 01, 2020
Fiscal year
Duration period of fiscal year	91 days	91 days	182 days	182 days	364 days	364 days
Minimum [Member]
Fiscal year
Duration period of fiscal year			364 days
Maximum [Member]
Fiscal year
Duration period of fiscal year			371 days

BASIS OF PRESENTATION (COVID-19

BASIS OF PRESENTATION (COVID-19 Pandemic) (Narrative) (Details) $ in Millions	3 Months Ended
	Aug. 01, 2020USD ($)store	May 02, 2020USD ($)store
Unusual or Infrequent Item, or Both [Line Items]
Number of store locations \| store	1,275
Increase (decrease) in net sales, percentage	11.10%
Liquidity position, including cash on hand and amounts available under senior secured asset based revolving credit facility \| $	$ 1,300	$ 1,100
Minimum [Member] \| COVID-19 Pandemic [Member]
Unusual or Infrequent Item, or Both [Line Items]
Number of stores closed temporarily \| store		900
Asset-Based Revolving Credit Facility [Member]
Unusual or Infrequent Item, or Both [Line Items]
Outstanding borrowings \| $	$ 0

BASIS OF PRESENTATION (Share Re

BASIS OF PRESENTATION (Share Repurchase Program) (Narrative) (Details) - Share Repurchase Program September 2018 [Member] - USD ($) $ in Millions	Aug. 01, 2020	Sep. 30, 2018
Share Repurchase Program
Common stock share repurchase authorized amount		$ 500
Remaining amount under share repurchase program	$ 293.5

BASIS OF PRESENTATION (Darice L

BASIS OF PRESENTATION (Darice Liquidation and Restructure Charges) (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Aug. 01, 2020	Aug. 03, 2019	Aug. 01, 2020	Aug. 03, 2019	Jan. 30, 2021
Disposal group information
Net sales	$ 1,148,170	$ 1,033,689	$ 1,948,058	$ 2,127,408
Impairment of indefinite and definite-lived intangible assets			3,500
Not Discontinued Operations [Member] \| Pat Catan's [Member]
Disposal group information
Restructure charges				7,000
Darice [Member]
Disposal group information
Net sales			$ 26,400	$ 40,100
Business exit costs	52,500
Darice [Member] \| Liquidation of Inventory [Member]
Disposal group information
Business exit costs	45,500
Darice [Member] \| General and Administrative Expense [Member]
Disposal group information
Business exit costs	$ 7,000
Darice [Member] \| Minimum [Member] \| Forecast [Member]
Disposal group information
Business exit costs					$ 58,000
Darice [Member] \| Maximum [Member] \| Forecast [Member]
Disposal group information
Business exit costs					$ 62,000

FAIR VALUE MEASUREMENTS (Narrat

FAIR VALUE MEASUREMENTS (Narrative) (Details) - 8.00% Senior Notes [Member]	6 Months Ended
	Aug. 01, 2020
Stated interest rate (as a percent)	8.00%
Debt instrument, maturity date description	maturing in 2027

FAIR VALUE MEASUREMENTS (Schedu

FAIR VALUE MEASUREMENTS (Schedule of Fair Values of Debt and Interest Rate Swaps) (Details) - USD ($) $ in Thousands	Aug. 01, 2020	Feb. 01, 2020	Aug. 03, 2019
Interest Rate Swaps [Member]
Liabilities, Fair Value
Short-term portion of cash flow hedges	$ 15,440	$ 13,007	$ 9,679
Long-term portion of cash flow hedges	5,948	3,555	8,902
8.00% Senior Notes [Member]
Liabilities, Fair Value
Senior notes	473,140	449,675	481,525
Term Loan Credit Facility [Member]
Liabilities, Fair Value
Term loan credit facility	$ 2,072,446	$ 2,119,802	$ 2,125,045

REVENUE RECOGNITION (Narrative)

REVENUE RECOGNITION (Narrative) (Details) - USD ($) $ in Thousands	Aug. 01, 2020	Feb. 01, 2020	Aug. 03, 2019
Product Information [Line Items]
Accounts Receivable, Net, Current	$ 31,043	$ 30,442	$ 23,941
Darice [Member]
Product Information [Line Items]
Accounts Receivable, Net, Current	$ 4,400	$ 13,300	$ 15,400

REVENUE RECOGNITION, (Schedule

REVENUE RECOGNITION, (Schedule of Gift Card Liability) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019	Aug. 01, 2020	Aug. 03, 2019
REVENUE RECOGNITION
Balance at beginning of period	$ 59,658	$ 55,708	$ 64,130	$ 61,071
Issuance of gift cards	11,405	13,140	18,310	24,465
Revenue recognized	(11,619)	(13,668)	(22,218)	(29,415)
Gift card breakage	679	584	(99)	(357)
Balance at end of period	60,123	55,764	60,123	55,764
Revenue recognized from the beginning liability	$ 6,400	$ 7,500	$ 12,400	$ 15,800

LEASES (Narrative) (Details)

LEASES (Narrative) (Details) $ in Millions	6 Months Ended
LEASES (Narrative) (Details) $ in Millions	Aug. 01, 2020USD ($)lease
Operating leases, initial terms	10 years
Operating leases, renewal term	5 years
Operating leases, option to extend	true
Operating lease, lease not yet commenced, description	Lease payments exclude $57.4 million related to 17 leases that have been signed as of August 1, 2020 but have not yet commenced
Operating lease contracts signed, but not commenced	$ 57.4
Number of operating lease contracts signed, but not commenced \| lease	17
COVID-19 Pandemic [Member]
Operating leases, abatements received	$ 12

LEASES (Components of Lease Cos

LEASES (Components of Lease Costs) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019	Aug. 01, 2020	Aug. 03, 2019
LEASES
Operating lease cost	$ 107,197	$ 104,600	$ 213,628	$ 210,065
Variable lease cost	38,127	36,077	77,571	72,517
Total lease cost	$ 145,324	$ 140,677	$ 291,199	$ 282,582

LEASES (Operating leases, suppl

LEASES (Operating leases, supplemental cash flow information) (Details) - USD ($) $ in Thousands	6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019
LEASES
Operating cash outflows included in the measurement of lease liabilities	$ 174,760	$ 214,439
Operating lease assets obtained in exchange for new operating lease liabilities	$ 115,060	$ 133,137
Weighted-average remaining lease term	5 years 10 months 24 days	6 years 2 months 12 days
Weighted-average discount rate	6.70%	5.60%

LEASES (Maturities of lease lia

LEASES (Maturities of lease liabilities) (Details) $ in Thousands	Aug. 01, 2020USD ($)
Operating Lease Liabilities, Payments Due
2020	$ 214,922
2021	412,898
2022	357,340
2023	294,707
2024	231,024
Thereafter	501,488
Total lease payments	2,012,379
Less: Interest	(365,536)
Present value of lease liabilities	$ 1,646,843

DEBT (Schedule of outstanding d

DEBT (Schedule of outstanding debt) (Details) - USD ($) $ in Thousands	Aug. 01, 2020	Feb. 01, 2020	Aug. 03, 2019
Debt
Total debt	$ 2,670,100	$ 2,682,550	$ 2,695,000
Less unamortized discount/premium and debt costs	(11,557)	(13,190)	(14,709)
Total debt, net	2,658,543	2,669,360	2,680,291
Less current portion	(24,900)	(24,900)	(24,900)
Long-term debt	$ 2,633,643	2,644,460	2,655,391
8.00% Senior Notes [Member]
Debt
Stated interest rate (as a percent)	8.00%
Total debt	$ 500,000	500,000	500,000
Term Loan Credit Facility [Member]
Debt
Total debt	$ 2,170,100	$ 2,182,550	$ 2,195,000

DEBT (Revolving Credit Facility

DEBT (Revolving Credit Facility) (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	May 02, 2020	Aug. 03, 2019	Aug. 01, 2020	Aug. 03, 2019
Asset-based Revolving Credit Facility
Borrowings on asset-based revolving credit facility	$ 600,000		$ 600,000
Losses on early extinguishments of debt and refinancing costs		$ (1,155)		$ (1,155)
Michaels Stores [Member]
Asset-based Revolving Credit Facility
Losses on early extinguishments of debt and refinancing costs		(1,155)		(1,155)
Asset-Based Revolving Credit Facility [Member] \| Michaels Stores [Member]
Asset-based Revolving Credit Facility
Maximum borrowing capacity		789,300	689,900	789,300
Unused borrowing capacity		686,100	601,700	686,100
Outstanding letters of credit		$ 103,200	$ 88,200	$ 103,200

DEBT (Interest Rate Swaps_Inter

DEBT (Interest Rate Swaps/Interest Rate Caps) (Narrative) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 01, 2020USD ($)	Aug. 03, 2019USD ($)	Aug. 01, 2020USD ($)	Aug. 03, 2019USD ($)	Apr. 30, 2020USD ($)derivative	Feb. 01, 2020USD ($)	Apr. 30, 2018USD ($)derivative
Debt
Interest expense	$ 36,740	$ 40,134	$ 74,863	$ 77,493
Interest Rate Swaps [Member]
Debt
Interest rate swaps liability	5,948	8,902	5,948	8,902		$ 3,555
Term Loan Credit Facility [Member] \| Interest Rate Swaps [Member] \| Michaels Stores [Member]
Debt
Number of interest rate derivatives \| derivative							2
Notional value							$ 1,000,000
Interest rate (as a percent)							2.7765%
Term Loan Credit Facility [Member] \| Interest Rate Swaps [Member] \| Michaels Stores [Member] \| Accumulated Gain (Loss), Cash Flow Hedge [Member] \| Reclassification out of Accumulated Other Comprehensive Income [Member]
Debt
Interest expense	4,500	900	8,000	1,600
Term Loan Credit Facility [Member] \| Interest Rate Caps [Member] \| Michaels Stores [Member]
Debt
Number of interest rate derivatives \| derivative					2
Notional value					$ 2,000,000
Interest rate (as a percent)					1.00%
Term Loan Credit Facility [Member] \| Interest Rate Caps [Member] \| Michaels Stores [Member] \| Accumulated Gain (Loss), Cash Flow Hedge [Member] \| Reclassification out of Accumulated Other Comprehensive Income [Member]
Debt
Interest expense	$ 0	$ 0	$ 0	$ 0

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE LOSS (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019	Aug. 01, 2020	Aug. 03, 2019
Accumulated Other Comprehensive Loss
Balance	$ (1,515,423)	$ (1,587,358)	$ (1,446,464)	$ (1,626,195)
Balance	(1,509,883)	(1,587,570)	(1,509,883)	(1,587,570)
Accumulated Other Comprehensive Loss [Member]
Accumulated Other Comprehensive Loss
Balance	(37,167)	(19,384)	(22,831)	(14,558)
Foreign currency translation adjustment	7,540	2,259	(1,804)	(549)
Interest rate swaps	1,420	(7,021)	(3,572)	(9,039)
Balance	$ (28,207)	$ (24,146)	$ (28,207)	$ (24,146)

INCOME TAXES (Narrative) (Detai

INCOME TAXES (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
INCOME TAXES (Narrative) (Details) - USD ($) $ in Millions	Aug. 01, 2020	Aug. 03, 2019	Aug. 01, 2020	Aug. 03, 2019
INCOME TAXES
Increase (decrease) in income tax expense	$ 17.2	$ 22.9	$ (29.7)	$ (9.4)

EARNINGS (LOSS) PER SHARE (Narr

EARNINGS (LOSS) PER SHARE (Narrative) (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019	Aug. 01, 2020	Aug. 03, 2019
EARNINGS (LOSS) PER SHARE
Anti-dilutive stock options shares excluded from the computation of earnings per share (in shares)	13.1	11.3	12.9	11.6

EARNINGS (LOSS) PER SHARE (Deta

EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019	Aug. 01, 2020	Aug. 03, 2019
Basic (loss) earnings per common share:
Net (loss) income	$ (7,757)	$ 24,547	$ (71,262)	$ 62,238
(Loss) income available to common shareholders - Basic	$ (7,757)	$ 24,518	$ (71,262)	$ 62,170
Weighted-average common shares outstanding - Basic (in shares)	147,296	157,272	147,080	157,511
Basic (loss) earnings per common share (in dollars per share)	$ (0.05)	$ 0.16	$ (0.48)	$ 0.39
Diluted (loss) earnings per common share:
Net (loss) income	$ (7,757)	$ 24,547	$ (71,262)	$ 62,238
(Loss) income available to common shareholders - Diluted	$ (7,757)	$ 24,518	$ (71,262)	$ 62,170
Weighted-average common shares outstanding - Basic (in shares)	147,296	157,272	147,080	157,511
Effect of dilutive stock options and restricted stock units (in shares)		1		24
Weighted-average common shares outstanding - Diluted (in shares)	147,296	157,273	147,080	157,535
Diluted (loss) earnings per common share (in dollars per share)	$ (0.05)	$ 0.16	$ (0.48)	$ 0.39
Restricted Shares [Member]
Basic (loss) earnings per common share:
Less income related to unvested restricted shares		$ (29)		$ (68)
Diluted (loss) earnings per common share:
Less income related to unvested restricted shares		$ (29)		$ (68)

SEGMENTS AND GEOGRAPHIC INFOR_3

SEGMENTS AND GEOGRAPHIC INFORMATION (Narrative) (Details)	6 Months Ended
SEGMENTS AND GEOGRAPHIC INFORMATION (Narrative) (Details)	Aug. 01, 2020segment
SEGMENTS AND GEOGRAPHIC INFORMATION
Number of reportable segments	1

SEGMENTS AND GEOGRAPHIC INFOR_4

SEGMENTS AND GEOGRAPHIC INFORMATION (Net Sales by Country and Product Category) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019	Aug. 01, 2020	Aug. 03, 2019
Segments
Net sales	$ 1,148,170	$ 1,033,689	$ 1,948,058	$ 2,127,408
United States [Member]
Segments
Net sales	1,037,294	939,036	1,762,233	1,933,136
Canada [Member]
Segments
Net sales	$ 110,876	$ 94,653	$ 185,825	$ 194,272

RELATED PARTY TRANSACTIONS (Nar

RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019	Aug. 01, 2020	Aug. 03, 2019	Feb. 01, 2020
Related Party Transactions
Long-term debt	$ 2,658,543	$ 2,680,291	$ 2,658,543	$ 2,680,291	$ 2,669,360
The Blackstone Group [Member]
Related Party Transactions
Percentage of equity ownership owned	14.00%		14.00%
Selling, General and Administrative Expenses [Member] \| The Blackstone Group [Member] \| Transportation and Supply Chain Software (Member)
Related Party Transactions
Expenses recognized	$ 400	800	$ 900	1,500
Cost of Sales and Occupancy Expense [Member] \| The Blackstone Group [Member] \| Lease Services (Member)
Related Party Transactions
Expenses recognized	2,500	$ 2,300	4,500	$ 5,000
Term Loan Credit Facility [Member] \| The Blackstone Group [Member]
Related Party Transactions
Long-term debt	$ 4,900		$ 4,900

CONDENSED CONSOLIDATED FINANC_3

CONDENSED CONSOLIDATED FINANCIAL INFORMATION (Balance Sheet) (Details) - USD ($) $ in Thousands	Aug. 01, 2020	May 02, 2020	Feb. 01, 2020	Aug. 03, 2019	May 04, 2019	Feb. 02, 2019
Current assets:
Cash and equivalents	$ 651,118		$ 409,964	$ 130,981
Merchandise inventories	1,021,691		1,097,109	1,256,465
Prepaid expenses and other current assets	60,721		62,287	69,672
Total current assets	1,764,573		1,599,802	1,481,059
Property and equipment, net	412,263		430,432	437,491
Operating lease assets	1,552,626		1,610,013	1,611,029
Goodwill	94,290		94,290	112,069
Other intangible assets, net	59,839		66,417	14,082
Other assets	17,322		18,940	23,277
Total assets	3,923,348		3,838,095	3,707,149
Current liabilities:
Accounts payable	627,619		476,298	533,473
Accrued liabilities and other	368,075		347,136	321,847
Current portion of operating lease liabilities	329,465		306,796	298,993
Current portion of long-term debt	24,900		24,900	24,900
Income taxes payable	29,141		41,236	11,974
Total current liabilities	1,379,200		1,196,366	1,191,187
Long-term debt	2,633,643		2,644,460	2,655,391
Long-term operating lease liabilities	1,317,378		1,357,821	1,377,039
Other liabilities	103,010		85,912	71,102
Total stockholders' deficit	(1,509,883)	$ (1,515,423)	(1,446,464)	(1,587,570)	$ (1,587,358)	$ (1,626,195)
Total liabilities and stockholders' deficit	3,923,348		3,838,095	3,707,149
Michaels Stores [Member]
Current assets:
Cash and equivalents	650,324		409,173	130,194
Merchandise inventories	1,021,691		1,097,109	1,256,465
Prepaid expenses and other current assets	91,706		92,601	93,549
Total current assets	1,763,721		1,598,883	1,480,208
Property and equipment, net	412,263		430,432	437,491
Operating lease assets	1,552,626		1,610,013	1,611,029
Goodwill	94,290		94,290	112,069
Other intangible assets, net	59,839		66,417	14,082
Other assets	39,768		37,146	51,427
Total assets	3,922,507		3,837,181	3,706,306
Current liabilities:
Accounts payable	627,619		476,298	533,473
Accrued liabilities and other	367,681		346,657	321,473
Current portion of operating lease liabilities	329,465		306,796	298,993
Current portion of long-term debt	24,900		24,900	24,900
Income taxes payable	29,141		41,236	11,974
Total current liabilities	1,378,806		1,195,887	1,190,813
Long-term debt	2,633,643		2,644,460	2,655,391
Long-term operating lease liabilities	1,317,378		1,357,821	1,377,039
Other liabilities	157,729		141,582	127,800
Total stockholders' deficit	(1,565,049)		(1,502,569)	(1,644,737)
Total liabilities and stockholders' deficit	$ 3,922,507		$ 3,837,181	$ 3,706,306

CONDENSED CONSOLIDATED FINANC_4

CONDENSED CONSOLIDATED FINANCIAL INFORMATION (Statements of Comprehensive Income) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019	Aug. 01, 2020	Aug. 03, 2019
Supplemental Condensed Consolidating Statement of Comprehensive Income
Net sales	$ 1,148,170	$ 1,033,689	$ 1,948,058	$ 2,127,408
Cost of sales and occupancy expense	805,658	666,703	1,383,724	1,342,783
Gross profit	342,512	366,986	564,334	784,625
Selling, general and administrative	289,053	290,074	570,394	610,670
Restructure charges		3,869		6,956
Store pre-opening costs	186	1,743	1,345	2,969
Operating (loss) income	53,273	71,300	(7,405)	164,030
Losses on early extinguishments of debt and refinancing costs		1,155		1,155
Income (loss) before income taxes	15,168	30,263	(80,710)	82,529
Income taxes	22,925	5,716	(9,448)	20,291
Net (loss) income	(7,757)	24,547	(71,262)	62,238
Other comprehensive income, net of tax:
Foreign currency and cash flow hedges	8,960	(4,762)	(5,376)	(9,588)
Comprehensive income (loss)	1,203	19,785	(76,638)	52,650
Michaels Stores [Member]
Supplemental Condensed Consolidating Statement of Comprehensive Income
Net sales	1,148,170	1,033,689	1,948,058	2,127,408
Cost of sales and occupancy expense	805,658	666,703	1,383,724	1,342,783
Gross profit	342,512	366,986	564,334	784,625
Selling, general and administrative	288,803	289,827	569,908	610,214
Restructure charges		3,869		6,956
Store pre-opening costs	186	1,743	1,345	2,969
Operating (loss) income	53,523	71,547	(6,919)	164,486
Interest and other expense, net	38,106	39,886	73,307	80,355
Losses on early extinguishments of debt and refinancing costs		1,155		1,155
Income (loss) before income taxes	15,417	30,506	(80,226)	82,976
Income taxes	22,985	5,774	(9,332)	20,398
Net (loss) income	(7,568)	24,732	(70,894)	62,578
Other comprehensive income, net of tax:
Foreign currency and cash flow hedges	8,960	(4,762)	(5,376)	(9,588)
Comprehensive income (loss)	$ 1,392	$ 19,970	$ (76,270)	$ 52,990

CONDENSED CONSOLIDATED FINANC_5

CONDENSED CONSOLIDATED FINANCIAL INFORMATION (Statements of Cash Flows) (Details) - USD ($) $ in Thousands	6 Months Ended
	Aug. 01, 2020	Aug. 03, 2019
Cash flows from operating activities:
Net cash provided by operating activities	$ 299,749	$ (2,108)
Cash flows used in investing activities:
Additions to property and equipment	(46,449)	(57,533)
Proceeds from sale of building	875
Net cash used in investing activities	(45,574)	(57,533)
Cash flows from financing activities:
Payment of debt refinancing costs		(6,032)
Net cash provided by (used in) financing activities	(13,021)	(55,265)
Net change in cash and equivalents	241,154	(114,906)
Cash and equivalents at beginning of period	409,964	245,887
Cash and equivalents at end of period	651,118	130,981
Michaels Stores [Member]
Cash flows from operating activities:
Net cash provided by operating activities	299,175	(3,839)
Cash flows used in investing activities:
Additions to property and equipment	(46,449)	(57,533)
Proceeds from sale of building	875
Net cash used in investing activities	(45,574)	(57,533)
Cash flows from financing activities:
Net repayments of debt	(612,450)	(522,450)
Net borrowings of debt	600,000	500,000
Payment of debt refinancing costs		(6,032)
Payment of dividend to Michaels Funding, Inc.		(25,060)
Net cash provided by (used in) financing activities	(12,450)	(53,542)
Net change in cash and equivalents	241,151	(114,914)
Cash and equivalents at beginning of period	409,173	245,108
Cash and equivalents at end of period	$ 650,324	$ 130,194