The Container Store quarterly results hurt by IPO
Home & Textiles Today Staff -- Home Textiles Today, January 9, 2014
Coppell, Texas-- The Container Store Group said Tuesday that third-quarter sales increased but the company took a hit from IPO-related expenses, resulting in a loss of $9.5 million, or $1.39 per share. Shares fell 22% yesterday after the quarterly results disenchanted Wall Street.
Results included $14.6 million in IPO-related stock-based compensation. The company went public Oct. 31, and its third quarter ended Nov. 30. Revenue from its Elfa storage business also decreased. Net income was $6.9 million in the third quarter of fiscal 2012.
The quarterly sales increase of 7.3% to $188.3 million from $175.4 million in the third quarter of fiscal 2012 was fueled by the retail business at The Container Store, where sales increased 10.8% to $163.7 million. Elfa third party sales decreased 11.3% to $24.6 million. Comp store sales increased 4.7%, the 14th consecutive quarter of comparable store sales increases.
For the year to date, net sales increased by 8.6% to $531.7 million from $489.7 million in the prior year. Comp store sales increased by 3.6%. Net loss was $10.2 million, compared to a net loss of $2.2 million in the fiscal 2012.
The company opened two new stores and ended the quarter with 63 stores. In a statement, Kip Tindell, chairman and ceo said the company has a goal of expanding to over 300 stores.
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