Container Store Sales Rise 7.3 Percent in Q3
COPPELL, Texas-In its first quarterly financial report since the completion of its initial public offering in November, The Container Store posted a net sales gain of 7.3 percent, to $188.3 million.
The specialty retailer also reported a net loss of $9.5 million in the quarter, which ended on Nov. 30, compared to net income of $6.9 million in last year's quarter. This included stock-based compensation of $14.6 million, compared to $157,000 in last year's quarter.
Kip Tindell, The Container Store's chairman and CEO, said the sales gain got its drive from the company's retail business, which brought a 10.8 percent sales gain. Same-store sales were up 4.7 percent, marking the 14th consecutive quarter of same-store sales increases. "These results demonstrate the strength of our differentiated business model, brand awareness, unique employee-first culture and solid execution by the entire team at The Container Store," Tindell said.
Gross margin in the quarter rose 63 basis points to 60 percent. Selling, general and administrative expenses gained 8.7 percent in dollar total and 58 basis points as a percentage of sales, to 47.2 percent.
Tindell said he foresees a "long runway of growth" ahead for The Container Store, which will take it from its current store count of 63 to "the 300-plus opportunity that we believe exists."