The Container Store reported a comparable sales gain and a Wall Street earnings estimate beat in its first quarter.
Consolidated net income was $10.5 million, or 21 cents per diluted share, versus $17.7 million, or 35 cents per diluted share, in the 2021 first quarter. Adjusted for one-time events, net income remained $10.5 million, or 21 cents per diluted share, Container Store reported, compared with $18.2 million, or 36 cents per diluted share, in the fiscal 2021 period.
Container Store beat a Yahoo Finance-published analyst consensus estimate of 17 cents per share.
Container Store comparable sales increased 5.1%, with Custom Closets+ up 14.7%, contributing 450 basis points of the advance, and general merchandise categories up 0.8%, contributing the remaining 60 basis points, according to the company.
Consolidated net sales were $262.6 million, up 7.1% from the year-earlier quarter. Net sales in The Container Store retail business were $246.8 million, up 7.9% from the year-prior period. Elfa International AB third-party net sales were $15.9 million, down 4.4% versus the year-previous quarter. With the impact of foreign currency translation excluded, Elfa third-party net sales gained 11.9% in the period year over year, Container Store stated.
Satish Malhotra, Container Store president and CEO, said, “Our first quarter results reflect a solid start to fiscal 2022 as we outperformed our expectations on both the top and bottom lines. In particular, we are delighted with the continued growth we saw in custom closets, which resulted in seven consecutive comparable quarters of growth in this category. I am proud of our team’s agility as they continue to successfully navigate a dynamic consumer environment while staying focused on our long-term growth objectives. We continue to be pleased with the reception of key initiatives such as our recently launched Organized Insider loyalty program, our mobile app, and our private-label products. We have recently announced an exciting sustainable product collaboration with YouTube influencer, Rosanna Pansino, as well as revamped our approach to back-to-college in our fiscal second quarter.
“Additionally, we plan to complete the rollout of our new premium custom wood-based offering, Preston, to all of our stores in the fiscal second quarter,” Malhotra continued. “While we are cognizant of the volatile backdrop for the consumer and are taking a prudently conservative view of the rest of the year, we are operating from a position of financial strength and remain confident in our ability to achieve our long-term objectives, including our path to $2 billion in sales by the end of fiscal 2027. This confidence is reflected in the authorization of our first stock repurchase program as we look forward to delivering results and value for all of our stakeholders.”