Container Store Net Rises in FY, Falls in Q4
April 29, 2014,
COPPELL, Texas-The Container Store Group reported adjusted net income of $16.4 million for its fiscal year ending on March 1, up 1.2 percent, despite a drop in fourth-quarter net income of 10.6 percent to $10.7 million.
The bottom-line numbers were adjusted for a number of items such as distributions to preferred shareholders, the costs for Container Store's initial public offering and taxes. Without these adjustments, the company narrowed its net loss for the year from $90.5 million to $51.6 million, and posted fourth-quarter net income of $18.3 million against a fourth-quarter net loss from last year of $22.8 million.
Net sales for the year rose 5.9 percent to $748.5 million, including a gain in same-store sales of 2.9 percent. In the quarter, net sales were essentially flat at $216.8 million, including a pickup of 1.4 percent in same-store sales.
Kip Tindell, Container Store chairman and CEO, called 2013 "an exciting year for us." Tindell added, however, that the fourth quarter was tough for the retailer, with "the worst weather we've seen in our 35-year history" throughout the nation.
Gross margin in the quarter was down 92 basis points to 58.2 percent. Selling, general and administrative expenses rose 2.5 percent in dollars and 111 basis points as a percentage of sales, to 44.5 percent.
Looking ahead, Container Store said it expects net sales in the current fiscal year to total between $827 million and $837 million, with a gain in same-store sales of between 3 and 4 percent.