Michaels Cos. shares slip on secondary offering, outlook

Michaels Cos. shares slipped in the extended session Tuesday after the arts and crafts retailer said certain shareholders were selling a large chunk of stock in a secondary offering. Michaels shares declined 3.6% to $27.85 after hours. The company said certain shareholders were selling 11 million shares, and that it would buy 1 million of those shares. As a result, Michaels said it expects second-quarter results in the "lower-to-middle range" of its previous guidance. In June, Michaels forecast earnings of 16 cents to 18 cents a share for the second quarter. Analysts surveyed by FactSet estimate earnings of 18 cents a share.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.