The Container Store Group, Inc. Provides Business Update Ahead of 2024 ICR Conference Presentation
09 January 2024 - 8:05AM
Business Wire
The Container Store Group, Inc. (NYSE: TCS) (the “Company”),
today provided an update on its third quarter fiscal 2023 outlook
in advance of its presentation and investor meetings at the 2024
ICR Conference.
The Company now expects consolidated net sales to be
approximately $214 million, compared to its prior guidance range of
$220 million to $225 million. The Company is still finalizing its
quarterly closing procedures, but expects its profitability for the
quarter to be negatively impacted by the sales shortfall. The
Company will discuss its full financial results and outlook for the
fourth quarter fiscal 2023 on its third quarter fiscal 2023
earnings call, which is expected to occur in early February.
Satish Malhotra, Chief Executive Officer and President of The
Container Store, commented, “The challenging business trends we
experienced in the second quarter continued. General merchandise
categories underperformed compared to our expectations and were
relatively consistent with our second quarter performance. While
our Custom Spaces business showed sequential topline improvement
compared to our second quarter performance, the magnitude of
improvement fell short of our expectations. We saw particular
strength in our premium, wood-based Custom Spaces line,
Preston™.
We continue to believe there is significant opportunity for
growth in the Custom Spaces business. We remain focused on
maximizing the potential of Custom Spaces as we manage the
challenges in our general merchandise business. Our teams are
dedicated to delivering exceptional customer experience across our
channels and we are committed to positioning The Container Store
for improved sales and profitability.”
The Company is scheduled to host a fireside chat at the 2024 ICR
Conference in Orlando, Florida, tomorrow, January 9, 2024, at 9:00
am Eastern Time. The fireside chat will be webcast live over the
internet and can be accessed at investor.containerstore.com. An
online archive will be available for a period of 30 days following
the discussion.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements contained in this press release that do not
relate to matters of historical fact should be considered
forward-looking statements, including statements regarding our
third quarter fiscal 2023 financial results, growth opportunities,
goals, strategies and long term targets and upcoming events and
presentations.
These forward-looking statements are based on management’s
current expectations. These statements are neither promises nor
guarantees, but involve known and unknown risks, uncertainties and
other important factors that may cause our actual results,
performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking statements, including, but not limited to, the
following: a decline in the health of the economy and the purchase
of discretionary items; our ability to continue to lease space on
favorable terms; costs and risks relating to new store openings;
quarterly and seasonal fluctuations in our operating results; cost
increases that are beyond our control; our inability to protect our
brand; our failure or inability to protect our intellectual
property rights; our inability to source and market new products to
meet consumer preferences; failure to successfully anticipate, or
manage inventory commensurate with, consumer preferences and
demand; competition from other stores and internet-based
competition; our inability to obtain merchandise from our vendors
on a timely basis and at competitive prices; vendors may sell
similar or identical products to our competitors; our and our
vendors’ vulnerability to natural disasters and other unexpected
events; disruptions at our manufacturing facilities; product
recalls and/or product liability, as well as changes in product
safety and other consumer protection laws; risks relating to
operating multiple distribution centers; our dependence on foreign
imports for our merchandise; our reliance upon independent third
party transportation providers; our inability to effectively manage
our online sales; effects of a security breach or cyber-attack of
our website or information technology systems, including relating
to our use of third-party web service providers; damage to, or
interruptions in, our information systems as a result of external
factors, working from home arrangements, staffing shortages and
difficulties in updating our existing software or developing or
implementing new software; failure to comply with laws and
regulations relating to privacy, data protection, and consumer
protection; our indebtedness may restrict our current and future
operations, and we may not be able to refinance our debt on
favorable terms, or at all; fluctuations in currency exchange
rates; our inability to maintain sufficient levels of cash flow to
meet growth expectations; our fixed lease obligations; disruptions
in the global financial markets leading to difficulty in borrowing
sufficient amounts of capital to finance the carrying costs of
inventory to pay for capital expenditures and operating costs;
changes to global markets and inability to predict future interest
expenses; our reliance on key executive management; our inability
to find, train and retain key personnel; labor relations
difficulties; increases in health care costs and labor costs;
violations of the U.S. Foreign Corrupt Practices Act and similar
worldwide anti-bribery and anti-kickback laws; impairment charges
and effects of changes in estimates or projections used to assess
the fair value of our assets; effects of tax reform and other tax
fluctuations; significant fluctuations in the price of our common
stock; substantial future sales of our common stock, or the
perception that such sales may occur, which could depress the price
of our common stock; risks related to being a public company; our
performance meeting guidance provided to the public; anti-takeover
provisions in our governing documents, which could delay or prevent
a change in control; acquisition-related risks and our failure to
establish and maintain effective internal controls.
These and other important factors discussed under the caption
“Risk Factors” in our Annual Report on Form 10‑K filed with the
Securities and Exchange Commission, (the “SEC”) on May 26, 2023 and
our other reports filed with the SEC could cause actual results to
differ materially from those indicated by the forward-looking
statements made in this press release. Any such forward-looking
statements represent management’s estimates as of the date of this
press release. While we may elect to update such forward-looking
statements at some point in the future, we disclaim any obligation
to do so, even if subsequent events cause our views to change.
These forward-looking statements should not be relied upon as
representing our views as of any date subsequent to the date of
this press release.
Financial Disclosure Advisory
The preliminary 2023 financial results included in this press
release are estimates and represent the most current information
available to the Company’s management, as financial closing
procedures for the third quarter ended December 30, 2023 are not
yet complete. The Company expects that its actual results to be
reported in its Quarterly Report on Form 10-Q for the quarter ended
December 30, 2023 will not differ materially from the preliminary
results, however, these results are subject to change following the
completion of quarterly accounting procedures and adjustment.
About The Container Store
The Container Store Group, Inc. (NYSE: TCS) is the nation’s
leading specialty retailer of organizing solutions, custom spaces,
and in-home services – a concept they originated in 1978. Today,
with locations nationwide, the retailer offers more than 10,000
products designed to transform lives through the power of
organization.
Visit www.containerstore.com for more information about
products, store locations, services
offered and real-life inspiration.
Follow The Container Store on Facebook, Twitter, Instagram,
TikTok, YouTube, Pinterest and LinkedIn.
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version on businesswire.com: https://www.businesswire.com/news/home/20240109631825/en/
Investors: ICR, Inc. Farah Soi/Caitlin Churchill
203-682-8200 Farah.Soi@icrinc.com Caitlin.Churchill@icrinc.com or
Media: The Container Store Group, Inc. Katelyn Clinton,
972-538-6491 publicrelations@containerstore.com
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