Stay At Home Consumer Fuels Strong Q2 For The Container Store

The Container Store posted strong second quarter results, as the retailer capitalized on the current stay-at-home market conditions. The company also pointed to the success of its partnership with The Home Edit, and revealed a new line with Marie Kondo.

Consolidated net sales in the second quarter ended September 26 were $248.2 million, up 5%, inclusive of a 16.8% increase in the fiscal month of September. Net sales in The Container Store retail business were $233 million, up 5.3%. Online sales increased 86.4% in the second quarter of fiscal 2020. Elfa International third-party net sales were $15.2 million, flat compared to the second quarter of fiscal 2019; however, excluding the impact of foreign currency translation, Elfa third-party net sales were down 6.6%.

Consolidated net income and net income per diluted share were $20.2 million and $0.41 compared to net income of $3.6 million and $0.08 in the second quarter of fiscal 2019.

Melissa Reiff, chairwoman and CEO, The Container Store, said, “We are thrilled to announce that we achieved the best second quarter sales, earnings and free cash flow in the company’s history. I am very proud of our second quarter results which reflect the significant strides we have made on our multi-year sales-driving initiatives across merchandising, marketing, stores and online. The hard work of our teams across the organization and disciplined execution of our strategic priorities enabled us to benefit from the current stay-at-home phenomenon created by today’s environment. Our focus on increasing relevancy with our marketing and merchandising alliances resulted in the successful 2019 product and marketing partnership we forged with The Home Edit. This positioned us to capitalize on increased interest in the storage and organization category resulting from their recently premiered Netflix show in early September.”

Reiff continued, “We continue to build our brand, broaden our appeal, increase our relevancy and fortify our position as the category leader. As outlined in our separate press release, we are delighted to announce our exclusive, elegant, and sustainably sourced collection of co-branded products with Marie Kondo, which is expected to be available in our stores and online beginning in January 2021. We believe these strategic partnerships with leading, innovative household names continue to ensure The Container Store remains top of mind when it comes to storage and organization and Custom Closets solutions.”