What happened
A double-digit fall in stock price was in the box for The Container Store (TCS 29.10%) on Wednesday. The specialty retailer's shares fell by almost 12% in value across the day after it unveiled its latest set of quarterly results.
So what
After market hours on Tuesday, The Container Store published its second-quarter results, and they weren't all that pleasing. For the period, net sales slipped by over 1% year over year to just under $273 million. That was on the back of a 0.8% drop in comparable-store sales.
On the bottom line, The Container Store's non-GAAP (adjusted) net income came in at $13.8 million, or $0.27 per share. That also represented a decline from the same period a year ago, when the company posted a $27.2 million adjusted profit.
Neither headline figure met analyst expectations, although the two misses weren't too dramatic. On average, prognosticators following the company estimated it would book nearly $284 million on the top line, and an adjusted, per-share net income of $0.28.
In its earnings release, the retailer attributed the erosion in fundamentals to lower sales in its general merchandise categories and macroeconomic factors such as inflation.
Now what
The Container Store proffered guidance for its current third quarter. The company expects it will post net sales of $240 million to $250 million and land in the black on the bottom line with a $0.02 to $0.07 per-share profit.
These numbers, however, are notably below the collective analyst estimates of $272 in revenue for the period and $0.25 per share in net income.
