On Wednesday, shares of storage retailer The Container Store (NYSE:TCS) are soaring, up about 30% to $5.34 per share in mid-morning trading after the company reported better-than-expected fourth quarter results yesterday after the bell.
The Container Store reported earnings of 17 cents per share, beating the Zacks Consensus Estimate of 10 cents per share; net income was $8.4 million. Consolidated revenues came in at $221 million, also surpassing the Zacks Consensus Estimate and increasing 5.3% year-over-year.
Net sales in its retail business were $203.3 million, while Elfa International AB third-party net sales were $17.8 million. Comparable store sales were down 0.2%, and the company notes that the Easter timing shift benefited the quarter’s comps by roughly 0.6%. Consolidated gross margin was 57.6%, a decline of 20 basis points compared to the year-ago quarter.
“We are very pleased to have completed fiscal 2016 with strong fourth quarter performance that exceeded our expectations across all financial metrics. Our Custom Closets business continues to positively contribute to comparable store sales and we’ve seen sales trends improve in our other product categories driven by new and more targeted marketing campaigns, as well as merchandising improvements,” said CEO Melissa Reiff.
Looking ahead for fiscal 2017, The Container Store expects net sales in the range of $830 to $850 million, and comps to decrease in the low single digit range. Net income is anticipated to be 25 cents to 35 cents per common share. The Container Store also plans on opening four new locations this fiscal year, as well as a relocation of its Chestnut Hill, MA store.
TCS is a #3 (Hold) on the Zacks Rank, with a VGM score of ‘A.’ Shares of The Container Store have decline over 35% year-to-date.
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Container Store (The) (TCS): Free Stock Analysis Report
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