We believe the risk that U.S.-based arts and crafts specialty retailer T he Michaels Cos. Inc.?s profitability and cash flow will materially weaken this year has diminished because announced trade deals with China and Vietnam have reduced inventory and cost uncertainty. Additionally, Michaels? sales trends year to date have been stronger than we initially believed, and we expect it will continue to benefit this year from the bankruptcies and market exit of key competitors. We expect tariff mitigating actions and higher top-line growth will result in roughly flat EBITDA and positive free operating cash flow (FOCF) generation in fiscal 2025 while tariffs will hinder margins relative to last year. Therefore, we affirmed all our ratings, including our ?B-? issuer credit
