The Container Store Group Inc. shares dropped about 20% to $8.35 in Tuesday’s after-hours trading session after the company reported weaker results in its fiscal third quarter.
Consolidated net income was $13.7 million, down from $19.7 million in the prior-year period. Consolidated net sales were $267.3 million, a decrease of 3% compared to the 13 weeks ended Dec. 26, 2020. Net sales in The Container Store’s
TCS,
retail business were down 3.1% compared with the third quarter of fiscal 2020, inclusive of a 5.4% decrease in general merchandise categories while Custom Closets were flat.
Company subsidiary Elfa International’s third-party net sales were down 1.3% compared with the third quarter of fiscal 2020.
The Container Store company said it expects fiscal fourth-quarter consolidated sales to decline about 11% compared with the fourth quarter of fiscal 2020.
“As we look forward, our financial results combined with the progress we are making against our strategic initiatives position us well to finish out our fiscal year strong despite continued pandemic-related headwinds,” Chief Executive Satish Malhotra said in prepared remarks.
Write to Denny Jacob at denny.jacob@wsj.com
This post was originally published on Market Watch
