2023-05-16 16:42:04 ET
The Container Store ( NYSE: TCS ) shares slumped in Tuesday’s extended session after missing Q4 sales expectations and issuing a downbeat full-year forecast.
For the fourth quarter, the Texas-based specialty retailer reported $0.18 in adjusted EPS for the quarter, narrowly edging expectations. However, a 15% drop in revenue year over year to $259.72M fell short of expectations. Comparable store sales fell 13.1% year over year.
“Looking ahead to fiscal 2023, we are taking a cautious approach given the ongoing macro uncertainty and pressure on our business in the first fiscal quarter to-date,” CEO Satish Malhotra advised. “We plan to execute cost management actions across the organization while remaining committed to our investments in our long-term strategic initiatives. We plan to continue prudently investing in growth areas of the business, including Custom Spaces, e-commerce, and product newness that is complementary to our current merchandise assortment, while remaining committed to new store growth.”
The company expects consolidated net sales ranging from $200M to $210M for the first quarter, well below the $257.71M consensus estimate. Meanwhile, comparable store sales are expected to decline between 23% and 19%. Adjusted loss per share is expected to range from $0.16 to $0.10 for the quarter against the analyst expectation of $0.12 in earnings per share.
For the full-year, consolidated sales and adjusted EPS are expected to range from $885M to $900M and $0.21 to $0.31, respectively. Consensus expectations for the two metrics stood at $1.07B and $0.65, respectively. Comparable sales are also anticipated to plummet by a mid-to-high teens percentage year over year.
Shares of The Container Store ( TCS ) tumbled 11.81% shortly after the earnings announcement .
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The Container Store stock slides over 10% on soft earnings outlook