Container Store results were flat in the holiday quarter as weather closed stores
The Container Store on Monday reported weaker year-end results as weather closed stores during the holiday season. The Coppell-based company’s stock price was trading lower in the after market.
New store openings under development and a loyalty program coming later this year are going to help drive sales, the company said. It’s also going after business from offices, hospitals, and other companies.
“Businesses need to save time and space as well,” said CEO Kip Tindell during a conference call with analysts this afternoon.
In the past, demand for business services has been strong, but the company didn’t have the resources to expand into the business-to-business sector, he said.
New stores in smaller markets like Indianapolis, Raleigh and Las Vegas have had surprisingly strong sales, said Tindell. The retailer plans to step up its new store plans and will grow its total square footage by 12 percent a year instead of 10 percent as previously forecast.
The company has the ability to grow faster, Tindell said. “Our people never leave. Our part-time people are waiting to become full-time and our full-time people are looking for new store management opportunities.”
“We’re ready to run like a horse that’s been in the barn too long,” Tindell said.
The company has been testing an At Home organization service in the Dallas market with professional organizers. President Melissa Reiff said the average At Home ticket has been close to $2,000. Later this year, the plan is to roll out of the service to New York, Chicago and Washington, D.C. People are using the service not only to organize a kitchen or garage, but also to unpack a house or stage it for sale, Reiff said.
The Container Store reported a fourth-quarter profit of $18.3 million, or 38 cents a share, in the period ended March 1, compared with a loss of $22.8 million, or $7.80 a share, a year earlier. Excluding items, the company said it posted a profit of 22 cents a share.
Sales declined to $216.8 million from $217 million a year ago. Same-store sales increased 1.4 percent from a year ago.
Analysts surveyed by Thomson Reuters had forecast a profit of 27 cents a share on sales of $221.38 million.
With 65 U.S. stores, the company has delayed an entry into Canada, Tindell said. The Container Store can quadruple its business in the U.S. alone by expanding into more markets like Indianapolis with regional populations of about 1.5 million, he said.
Here’s a list of new stores planned for this year:
King of Prussia, PA (Opened March 8 th )
Seattle area in Tukwila, WA (Southcenter) (Opened April 12 th )
Providence area in Cranston, RI (Garden City Center) (Opening May 17 th )
Relocation of current Oak brook, IL location to Oakbrook Center mall (Opening June 28 th )
Los Angeles, CA (Farmer’s Market) (Opening August 9 th )
Salt Lake City area in Murray, UT (Fashion Place Mall) (Opening October 18 th )
Chicago, IL (South Loop) (Opening November 15 th )
TBD one more new store location hasn’t yet been announced.