Morgan Stanley analyst Simeon Gutman downgraded Michaels to Underweight from Equal Weight with a $5 price target.

Michaels announced lower prices on over 5,000 items across categories spanning arts, crafts, DIY and home decor, offering customers everyday savings on the products they shop the most. With these latest markdowns, Michaels is helping customers fuel the joy of creativity while maximizing value. Lower prices are now in effect across categories including home decor, art supplies, seasonal items, kids' projects, wall frames, and more. To keep creativity accessible for as many customers as possible, the prices of frequently bought items like paint, markers and pens have been reduced by up to 15%; adhesive and permanent vinyl, papers, stickers, and unfinished wood letters have been reduced by up to 20%; canvases have been reduced by up to 35%, and T-shirts have been reduced by up to 40%.