Container Store Group Inc (NYSE:TCS) shares are 18.27% higher to $6.97 after previously trading below $6.00 when the company released strong earnings figures for the latest quarter.
Container Store Group Inc (NYSE:TCS) adjusted earnings per share came in at $0.20 in line with analysts’ earnings. Comparable sales grew 0.2% in the quarter versus management expectations of a 3-5% decline. With this report, the company was able to cap off a trend of post-earnings slides. The storage and organization products retailer posted revenue of $232.1 million in the period.
In addition, the company provided optimistic guidance for the current quarter, projecting $830 million-$845 million in revenue and comparable-sales growth between -1.5% and +0.5%. Cost-cutting efforts can help boost earnings to $0.20-$0.30, above the $0.11 posted for fiscal 2016. Container Store Group Inc (NYSE:TCS) CEO Kip Tindell added that the company would heighten efforts to lower SG&A spending in the coming year.
“We performed much better than we projected for the fourth quarter and importantly, saw improved and positive comparable-store sales across non-TCS Closets and non-elfa areas of the store,” said Tindell in a press release. Revenue came in at $794.6 million and profits landed at $5.1 million for the year.
Tindell also commended the company’s new closets initiative, which was a key driver of performance, and added significantly to same-store sales. Gross margin at nearly 60% of sales was maintained, indicating that the company didn’t need to lower prices to generate higher store traffic.
The Container Store Group Inc (NYSE:TCS) is a retailer of storage and organization products in US. It operates in two segments, namely TCS and Elfa. TCS consists of retail stores, website and call center. Elfa designs and manufactures component-based shelving, drawer systems and sliding doors. The company is based in Coppell, TX and has 4,900 employees.
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