Strong sales in its custom closets business was a key factor in a solid close to the fiscal year for The Container Store.
The retailer reported net sales for the fourth quarter ended March 31 of $232.8 million, up 5.3% from the comparable quarter the previous year. Net sales in the company’s retail business were up 5.3% while its Elfa International third-party sales grew 4.8%.
Comparable store sales were up 2.7% with custom closets contributing strongly to the increase, company officials said.
“We are very pleased to have concluded our fiscal 2017 with our strongest quarter of comparable store sales performance of the year, driven by an acceleration in our important custom closets business as well as in our other product categories,” said Melissa Reiff, CEO of The Container Store. “This improvement is primarily the result of our sales revitalization and optimization initiatives.”
Reiff noted that the company has started to invest in a second distribution center that is expected to open in the latter part of its fiscal year 2019.
For the full fiscal year, net sales were $857.2 million, up 4.5% over the previous fiscal year. Net retail sales were $787.4 million, up 4.6% driven primarily due to new store sales, as well as a 0.9% increase in comparable store sales. Elfa third-party net sales were $69.9 million, up 3.9% compared to fiscal 2016.