Container Store slumps after 3Q report
(Associated Press Via Acquire Media NewsEdge) NEW YORK (AP) — NEWS: The Container Store said Tuesday that its sales improved in the fiscal third quarter, but its shares slumped in aftermarket trading.
DETAILS: Container Store said sales at its namesake stores climbed, but revenue from its Elfa storage-system parts business decreased. The Coppell, Texas, company went public Oct. 31, and its third quarter ended Nov. 30.
Container Store Group Inc. had 63 stores in 22 states and Washington, D.C., at the end of the quarter.
NUMBERS: The company said it lost $25.1 million, or $1.39 per share. A year ago it took a loss of $15.6 million, or $5.32 per share. Excluding one-time items, the company said it earned 11 cents per share, the same as a year ago. Revenue grew 7 percent to $188.3 million from $175.4 million.
Analysts expected adjusted net income of 8 cents per share and $188.9 million in revenue, according to FactSet.
Container Store said sales at locations open at least a year rose 4.7 percent, above the 4 percent growth analysts expected. Sales at stores open at least a year are considered a key measurement of retailer health because they exclude results from stores that opened or closed within the last year.
FUTURE: Container Store is forecasting adjusted net income of 40 cents per share and $754 million in sales in fiscal 2013.
Analysts expect 38 cents per share and $756.2 million in revenue on average.
STOCK: Container Store's IPO of 12.5 million shares priced at $18 per share. The stock doubled on its first day of trading and rose $2.81, or 6.5 percent, to $45.79 on Tuesday. In aftermarket trading the shares fell $3.74, or 8.2 percent, to $42.05.
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