TCS - Why The Container Store Stock Fell as Much as 10% This Morning
Shares of The Container Store Group (NYSE: TCS) , a retailer that sells closet and storage products, fell as much as 10% in morning trading on Wednesday. Although that decline was cut nearly in half by 11 a.m. ET today, it doesn't change the fact that the company's earnings outlook has darkened.
The Container Store's fiscal first quarter of 2022 wasn't bad, per se. Comparable-store sales rose 5.1%, driven by the key custom-closets business, where sales jumped 14.7% year over year. That segment contributed 4.5 percentage points to the overall sales increase.
While that's good news, the company's general merchandise segment was much less impressive, with a year-over-year sales increase of just 0.8%, contributing the remaining 0.6 percentage points to overall comps. There are divergent results here, but the company is known for its closet products, so that's perhaps not such a bad thing.
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Why The Container Store Stock Fell as Much as 10% This Morning