Container Store Group Inc (NYSE:TCS) reported better-than-expected earnings for its fourth quarter and issued strong 2019 guidance.
Tuesday, the company, based in Coppell, Texas, reported consolidated net sales of $253.2 million, up 8.8%. Net sales in The Container Store retail business were $235.7 million, up 10.1%.
Comparable store sales increased 8.5%, with Custom Closets up 7.4%, contributing 380 basis points of the increase to comparable store sales.
Consolidated net income and net income per share were $15.9 million and $0.33 compared to a net loss of $0.4 million and ($0.01), respectively, in the fourth quarter of fiscal 2017. Adjusted net income per share was $0.33 compared to $0.18 in the fourth quarter of fiscal 2017.
Adjusted EBITDA was $37.8 million compared to $31.1 million in the prior year period.
CEO Melissa Reiff said, "This performance reflects the improvements we continue to make across all aspects of our business – in merchandising and new product development, marketing, inventory management and in-stock levels, as well as overall execution with excellence in our stores and our online channel."
Reiff continued, "We have plans in fiscal 2019 to strategically build on our progress to drive more brand awareness and market share gains, specifically in our core Custom Closets business where we recently launched our new Avera product line,” Reiff added. "Our second distribution center in Maryland is planned to become fully operational in late fiscal 2019."
Shares in TCS doffed 58 cents, or 6.8%, to $7.94
