The Container Store is changing the dates of its fiscal year in an effort to better reflect sales from the fourth quarter and its annual elfa brand storage and shelving system sale that historically has run from Christmas Eve through February.
According to an 8-K filing with the Securities and Exchange Commission, the company’s board of directors on March 30 approved the change. As a result, the retailer’s fiscal year will now end on the Saturday closest to March 31 of each year. Previously, its fiscal year ended on the Saturday closest to February 28.
The company’s 2016 fiscal year will now begin on April 3 and end on April 1, 2017.
In its SEC filing, the company said it has historically realized a higher portion of net sales, operating income and cash flows from operations in the fourth fiscal quarter, attributable primarily to the timing and impact of the elfa sale.
The company said the change in its fiscal year would assist it with incorporating the results from the elfa sale into the budget for the upcoming fiscal year, as well as planning for future product, merchandising and marketing initiatives.
In addition, the company said its historically strong sales at the beginning of the elfa sale and the fact that the third quarter of its new fiscal year will include the month of December is expected to make the company less reliant on the fiscal fourth quarter and realize more sales and profitability in the fiscal third quarter.
The company expects to release its results for the fourth quarter and year ended February 27 on April 25.