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The Container Store Group (TCS) Misses Q2 EPS by 4c, Slight Miss on Revenues; Reaffirms FY18 EPS/Revenue Outlook

October 30, 2018 4:23 PM

The Container Store Group (NYSE: TCS) reported Q2 EPS of $0.10, $0.04 worse than the analyst estimate of $0.14. Revenue for the quarter came in at $224.5 million versus the consensus estimate of $225.08 million.

“We continued to make progress against our key strategic initiatives in the second quarter and also completed a debt refinancing that extends the maturity of our credit facility while generating approximately $0.07 per share in annualized interest savings,” said Melissa Reiff, Chief Executive Officer. “To Own Custom Closets is our number one strategic priority and we saw continued momentum in our Custom Closets sales in the quarter, along with strong omni-channel growth and effective digital marketing campaigns. However, elements of our merchandise campaign test and learn efforts, mostly around our other product categories, did not resonate with customers as well as we expected, curtailing our comparable store sales and earnings performance for the quarter.”

Reiff added, “Once we cycled the merchandise campaign changes, we were pleased to see our other product categories return to positive comparable store sales territory and based on our year-to-date financial and operational performance, we are reiterating our full year outlook.”

GUIDANCE:

The Container Store Group sees FY2018 EPS of $0.41-$0.51, versus the consensus of $0.46. The Container Store Group sees FY2018 revenue of $885-895 million, versus the consensus of $886.14 million.

For earnings history and earnings-related data on The Container Store Group (TCS) click here.

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