Container Store Group Inc (NYSE: TCS) shares rose after reporting comparable store sales were up 4.7% in the first quarter. Adjusted EPS came in at $(0.08), up from $(0.11) in the same quarter of last year.
The company raised its FY2018 outlook.
The company, based in Coppell, Texas, also reported that consolidated net sales were $195.8 million, up 6.9%. Net sales in The Container Store retail business (“TCS”) were $180.1 million, up 7.8%.
Consolidated net loss and net loss per share were $6.8 million and ($0.14) compared with $7.7 million and ($0.16), respectively, in the first quarter of fiscal 2017.
Said CEO Melissa Reiff, "We are very pleased that our strong fiscal fourth quarter momentum carried through the first quarter of fiscal 2018 with improving trends in our Custom Closets business as well as ongoing positive comparable store sales contribution from our other product categories, as our sales revitalization and optimization initiatives continued to deliver positive results.
"These broad-reaching initiatives span product and visual merchandising, marketing campaigns, our stores – including the exciting redesign of our Dallas flagship store, which was completed in June 2018 - and e-commerce channels as well as our product costs and overall expenses."
During the first quarter of fiscal 2018, the Company opened one new store in Bridgewater, New Jersey. During the remainder of fiscal 2018, the Company plans to open one additional location in Oklahoma City, Oklahoma and also plans to relocate its Cherry Creek store in Denver, Colorado and its Tysons Corner, Virginia store.
Shares in TCS popped $2.66, or 40.2%, to $9.29, in mid-morning trading on Thursday.
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