The Container Store Group Inc (TCS) Reports Q2 2023 Financial Results
Second quarter consolidated net sales of $219.7 million, a decrease of 19.4% compared to the same period in fiscal 2022.
Comparable store sales down 20.0% compared to the second quarter of fiscal 2022.
Second quarter loss per share of $0.48, inclusive of a $23.4 million non-cash goodwill impairment charge.
Adjusted net income per diluted share of $0.01 compared to $0.27 in the second quarter of fiscal 2022.
On October 31, 2023, The Container Store Group Inc (NYSE:TCS) announced its financial results for the second quarter of fiscal 2023 ended September 30, 2023. The company reported consolidated net sales of $219.7 million, a decrease of 19.4% compared to the second quarter of fiscal 2022. The company also reported a second quarter loss per share of $0.48, inclusive of a $23.4 million non-cash goodwill impairment charge. Adjusted net income per diluted share was $0.01, compared to $0.27 in the second quarter of fiscal 2022.
Company Performance and Challenges
Satish Malhotra, Chief Executive Officer and President of The Container Store, commented on the company's performance amidst a challenging macro-environment. He stated,
For the second quarter we delivered results above the high end of our expectations against the continued challenging macro-environment. We continued to give new and existing customers reasons to shop with us through our successful back-to-college campaign and hundreds of new, premium products supported by our Uncontained branding campaign."
Despite the sales pressure, the company was pleased with the performance of these initiatives which complement their core offering of storage and organization solutions.
Financial Highlights
The company's balance sheet as of September 30, 2023, showed cash of $10,195 thousand, total debt of $173,201 thousand, and liquidity of $104,303 thousand. Net cash provided by operating activities was $20,691 thousand. The company did not make any share repurchases during the second quarter of fiscal 2023.
Outlook
The Container Store provided its financial outlook for the fiscal third quarter ending on December 30, 2023, and the full year ending March 30, 2024. The company expects consolidated net sales to be between $220 - $225 million for the third quarter and $870 - $885 million for the full year. The company also expects a net loss per diluted share of ($0.13) - ($0.09) for the third quarter and ($0.82) to ($0.70) for the full year.
Future Plans
The company plans to open four new small format stores in the remainder of fiscal 2023 and four new stores in fiscal 2024. The four new stores for the remainder of fiscal 2023 are located in Woodland Hills, CA; Princeton, NJ; Gaithersburg, MD; and Huntington, NY.
Explore the complete 8-K earnings release (here) from The Container Store Group Inc for further details.
This article first appeared on GuruFocus.
