Owner store

Container Store stock plunges 20% after earnings

Shares of Container Store Group Inc. fell about 20% to $8.35 in Tuesday’s after-hours trading after the company reported weaker results in its third fiscal quarter .

Consolidated net profit was $13.7 million, compared to $19.7 million in the same period a year earlier. Consolidated net sales were $267.3 million, down 3% from the 13 weeks ended December 26, 2020. Net sales in The Container Store’s TCS,
+5.94%
retail activity was down 3.1% from the third quarter of fiscal 2020, including a 5.4% decline in general merchandise categories, while Custom Closets was flat.

Net sales to third parties of the company’s subsidiary Elfa International decreased by 1.3% compared to the third quarter of fiscal 2020.

The Container Store company said it expects fiscal fourth quarter consolidated sales to decline about 11% from the fourth quarter of fiscal 2020.

“As we look to the future, our financial results combined with the progress we are making against our strategic initiatives position us well to finish our fiscal year strong despite the continued headwinds related to the pandemic,” said the managing director Satish Malhotra in prepared remarks.

Write to Denny Jacob at [email protected]