Shares of The Container Store were down more than 19% in early trade on Tuesday after the company on Monday night reportedsame-store sales that fell 0.4% and revenue for the second quarter that came in below expectations.
On Monday afternoon, the retailer reported revenue of $US193.2 million against expectations for $US199.2 million, according to analyst estimates from Reuters, as sales on a same-store basis slowed.
In the quarter, the company reported adjusted earnings per share of $US0.11, which was in-line with expectations.
And in its third quarter, the Container Store expects same-store sales to be flat to down low-single digits, with fourth quarter same-store sales expects to increase by low- to mid-single digits.
In a press release, Container Store CEO Kip Tindell said, “We continue to be encouraged as we move closer to our important fourth quarter where we’ll be comping against last year’s weather, which impacted traffic and sales more than at any time in our history. Historically, over 60 per cent of our net income has been derived in the fourth quarter and we expect it to derive approximately 70 per cent of our reported net income this year. We’ll continue to maximise every customer interaction while also focusing on the long-term health and growth opportunities of our business, as well as on our beloved employees and culture.”
Back in July, Tindell said that the company, and its retail peers more broadly, were experiencing a “retail funk.”
Overall, it’s been an ugly year for The Container Store, which went public a little less than a year ago, and in the last six months, shares are down nearly 50%.
Here’s the ugly chart.