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The Container Store: Weather Attributed To Q4 Sales Slowdown

Wednesday April 30th, 2014 - 10:41AM


The Container Store Group, Inc. today announced financial results for the fourth quarter and fiscal year ended March 1, 2014GAAP net income for the fourth quarter was $18.34 million, or $0.38 per share. Adjusted net income was $10.7 million or $0.22 per share, as compared to $12.0 million or $0.25per share in the fourth quarter of fiscal 2012. Comparable store sales for the fourth quarter increased by 1.4%. 

The company reported that net sales for the 13-week quarter were $216.8 million, roughly flat compared to the $217 figure posted in the fourteen-week period the year prior. Excluding the 14th week in the fourth quarter of fiscal 2012, the company reported that net sales increased 5.6%.

“[2013] was the worst weather we’ve ever seen in our over 35-year history, which impacted nearly all of our stores throughout the country. These extraordinary weather conditions were exacerbated with the shortened holiday shopping season— with two of the three most important weekends hard hit with weather and store closures,” said Kip Tindell, chairman and CEO of The Container Store. “However, it’s important to note that our stores in less-weather impacted regions achieved a strong comparable store sales increase, well over plan for the fourth quarter.

For the full fiscal year, the company reported adjusted net income was $16.4 million or $0.33 per adjusted diluted common share compared to $16.2 million or $0.34 per adjusted diluted common share in fiscal 2012. The 53rd week of fiscal 2012 increased adjusted net income by $1.3 million, or $0.03 per adjusted diluted common share.

The company raised its guidance from a minimum of 10% annual square footage growth to 12%. The company also announced new initiatives and plans to open eight stores in fiscal 2014, with a focus on expanding in "mid-sized" markets, such as Indianapolis, Raleigh, Charlotte, Nashville, etc. The Container Store opened six locations during the fourth quarter, including the relocation of an undersized store, ending the period with 63 stores.