On February 08, The Container Store Group Inc. (TCS) declared its financial results for the third quarter of fiscal 2021. The thirteen-week-long quarter ended on January 01, 2022. Following the announcement, the stock tumbled down in the after-hours on Tuesday.
While the stock has an average volume of 562.61K, it gathered 1.12 million shares volume on Tuesday in anticipation of the earnings. The hopefulness and positive expectations for the earnings resulted in the stock gaining 5.94% during regular trading. TCS closed the regular session at $10.53, adding $0.59. The disappointing earnings and bleak outlook caused the stock to plunge down by 24.98% in the after-hours session. Hence, the stock went down to $7.90 per share value in the after-hours on Tuesday.
The storage and organization products and solutions retailer, The Container Store Group Inc. was founded in 1978. Currently, the company has a market capitalization of $503.42 million with 50.65 million shares outstanding.
TCS Q3 Fiscal 2021
In the third quarter of fiscal 2021, the company’s net sales suffered a 3% YOY decline to $267.3 million. The TCS retail net sales decreased by 3.1% YOY and third-party net sales by 1.3% YOY.
Furthermore, the adjusted consolidated net income was $14.3 million in Q3 fiscal 2021, against $20.7 million in the prior-year period. Thus, marking a YOY decline of 31.1%. Subsequently, the adjusted consolidated net income per diluted share was $0.28 and $0.42 in Q3 of fiscal 2021 and fiscal 2020, respectively.
Future Outlook
Along with the quarterly results, the company also provided guidance for the ongoing quarter. For Q4 fiscal 2021, the company expects a decline of 11% YOY in the consolidated net sales. Moreover, TCS also expects earnings of $0.24 per share for the quarter.
Closet Works Acquisition
On January 03, the company announced the strategic acquisition of Closet Works for $21.5 million. Closet Works is a home storage solutions and closet organization company based in Chicago.
The purpose of the acquisition was the expansion of its manufacturing capabilities to encompass woof-based spaces and the enhancement of wood-based product offerings.
Additionally, Tom Happ, president and former co-owner of Closet Works joined the company as the president of Closet Works. The acquisition deal closed on December 30, 2021.
TCS Other Developments
On January 11, the company’s management presented at the 24th Annual ICR Conference.
On December 23, TCS announced the appointment of Lisa Klinger as a Class III Director and a member of its Audit Committee.
