Second quarter sales at The Container Store were up as the home specialty retailer reported solid gains despite lost sales from store closures during hurricanes Harvey and Irma.
For the quarter ended September 30, consolidated net sales were $218.4 million, up 6.5% over the comparable quarter the prior year. Net sales within the company’s retail business were up 7% while Elfa sales grew 0.7%. The company estimates the two hurricanes, which impacted stores in Texas and Florida, accounted for lost sales of about $1.4 million. Comparable store sales for the quarter were up 1.9%.
Consolidated net loss per share (EPS) was $0.02 compared with $0.07 in the second quarter of fiscal 2016. Adjusted net income per share (adjusted EPS) was $0.12 compared with $0.08 in the second quarter of fiscal 2016. Net loss per share and adjusted net income per share in the second quarter of fiscal 2017 includes an estimated $0.01 per share negative impact related to the impact of the hurricanes.
“The improvement in our business was broad-based across product categories and reflects the traction of our sales revitalization initiatives which, in combination with our efficiency and optimization efforts, is already driving an encouraging improvement in profitability as illustrated by the 50% increase in our adjusted EPS in the second quarter,” said Melissa Reiff, CEO, The Container Store.
Noting that the company is “encouraged” by the progress with its strategic priorities across merchandising, marketing, store operations and customer experience, as well as its optimization initiatives, the retailer is raising its full-year outlook.
The Container Store now expects net sales to between $845 million and $865 million, with comparable store sales to be between -1% to 1% and adjusted net income per share between $0.30 and $0.41.