What happened Shares of Michaels Companies (NASDAQ: MIK) crashed hard on Thursday, following the release of weak third-quarter results. The stock closed on Thursday 15.6% lower. So what In the third quarter, Michaels saw comparable-store sales falling 2.2% year over year, far below the essentially flat guidance target. Top-line sales fell 4% to $1.22 billion, and adjusted earnings came in 17% lower at $1.40 per diluted share. Analysts had been expecting earnings near $1.48 per share, on revenue closer to $1.27 billion. Michaels stores weren't quite this empty in the third quarter. Image source: Author. Now what Michaels' management said that some of the weak performance sprang from challenging macroeconomic and industry trends, but those pressures were amplified by execution issues. The company is promising to step up its marketing, inventory management, and seasonal sales events in the fourth quarter, continuing to focus more keenly on so-called Makers -- true crafting enthusiasts who may pay higher prices for better service and a unique product assortment. This is not a unique strategy in the brutally competitive consumer goods sector, but it's rare to see companies defining their target audiences in as much detail as Michaels is doing nowadays. The stock now trades at 3.3 times trailing earnings, having plunged 59% lower over the last 52 weeks. This is either a toxic failure or a huge rebound in the making, depending on whether the company can execute in its quest for higher-quality customers and wider profit margins. 10 stocks we like better than The Michaels CompaniesWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and The Michaels Companies wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Anders Bylund has no position in any of the stocks mentioned. The Motley Fool recommends The Michaels Companies. The Motley Fool has a disclosure policy.Source