S&P shifts Michaels’ view to negative

S&P said it revised the outlook for Michaels Cos. to negative from stable, citing economic uncertainty and tariff pressures.

“We expect tariffs to become increasingly challenging to mitigate with the company estimating $400 million-$500 million of product exposure subject to list four tariffs, which are currently expected to be 15%. The outlook revision follows our view of the increased likelihood of full implementation of list four tariffs along with a 30-35% probability of a recession over the next year,” said S&P in a press release.

The agency affirmed the ratings on the company and its debt.

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