Shares of Container Store Group Inc. TCS,
fell more than 6% in Tuesday’s extended session after the retailer reported mixed second-quarter fiscal results and said foot traffic in its stores was slowing. Container Store earned $15.7 million, or 31 cents per share, from $27.2 million, or 54 cents per share, a year ago. Adjusted for single items, the retailer earned 27 cents per share. Sales decreased 1.2% to $272.7 million as same store sales decreased 0.8%. Analysts polled by FactSet had expected the company to report adjusted earnings of 23 cents per share on sales of $282 million. “With inflationary pressures continuing to mount, coupled with rising interest rates, we saw customer traffic decline during the second quarter, and we expect these trends to continue until these external pressures subside. ‘mitigate,’ the company said. “However, we remain committed to our strategic initiatives to support our long-term growth and our $2 billion revenue goal.” Container Store shares ended the regular trading day down 6.1%. , with Custom Spaces+ up 7.1%, contributing to a 230 basis point increase in same-store sales^ which was offset by general merchandise categories, which were down 4.6%, negatively impacting comparable store sales^ by 310 basis points.
