Leading market position with strong brand recognition in the mature, highly fragmented, and competitive arts and crafts industry. Competes in a cyclical industry and sells highly discretionary products. Good margin profile resulting from the company's high private-label merchandise penetration and increased vertical sourcing capabilities. We expect relatively stable credit metrics with adjusted leverage maintained in the 4.0x-4.5x range for fiscal 2018 and 2019. Good free operating cash flow generation and adequate liquidity. Current financial policy prioritizes shareholder returns over debt reduction. S&P Global Ratings' stable outlook reflects our expectation that The Michaels Cos. Inc.'s growing scale and vertical sourcing, effective merchandising, and heightened focus on customer engagement, will enable it to maintain market share and generate consistent operating results in
