Image source: Michaels Companies.

What: Shares of Michaels Companies (NASDAQ:MIK) were up 10.6% as of 2:40 p.m. EST Thursday after the arts and crafts retailer announced better-than-expected fiscal fourth-quarter 2015 results.

So what: Quarterly revenue climbed 4.6% year over year, to $1.68 billion, helped by a 3.1% increase in comparable-store sales -- up 4.7% at constant currency. That translated to 17.3% growth in net income, to $183.7 million, and a 16% increase in net income per share, to $0.87. By comparison, analysts' consensus estimates predicted earnings of $0.84 per share on revenue of $1.65 billion.

Michael CEO Chuck Rubin elaborated:

We improved our in-store shopping experience, increased our customer communications, offered a trend-right holiday assortment, and our customers responded. Our strong fourth-quarter results helped drive our full-year success. We delivered against each of the financial goals we established at the beginning of fiscal 2015, despite stronger than expected headwinds from foreign exchange rates.

Now what: For its fiscal first-quarter 2016, Michaels anticipates comparable-store sales growth of 1.9% to 2.4% (2.8% to 3.3% at constant currency), and diluted earnings per share of $0.34 to $0.36. By comparison, analysts were predicting earnings of $0.38 per share. 

For the full fiscal-year 2016, however, Michaels expects comparable-store sales growth of 2.2% to 2.7% (2.8% to 3.3% at constant currency), total net sales growth of 8% to 9% (8.6% to 9.6% at constant currency), and diluted earnings per share between $1.88 and $1.96. Note the bottom line of this guidance includes the impact of both unfavorable Canadian exchange rates, and $10 million to $12 million in integration costs related to its recently announced acquisition of Lamrite West.

The top line also includes $225 million to $250 million in revenue from Lamrite. Analysts, on average, were anticipating fiscal 2016 revenue would grow a modest 4% year over year, to $5.11 billion, and result in earnings right in the middle of Michaels' guidance at $1.92 per share.

In the end, given Michaels' relative outperformance in Q4 and its solid full-year guidance, its no surprise to see investors celebrating these results today.