What happened
Home Goods Retailer Actions The container store (NYSE: TCS) took off at the open, gaining up to 25% at the start of trading on Wednesday. At around 11 a.m. EDT, the stock still held a nearly 20% lead. The big news was the release of the company’s second quarter 2021 tax results, which hit the market after the close on Tuesday.
So what
The container store posted second-quarter sales of $ 276 million, up 11% from the same period of 2020. The current tally was also nearly 17% higher than the 2019 figure, showing growth constant despite the impact of the coronavirus pandemic. Adjusted earnings of $ 0.54 per share, meanwhile, were up from $ 0.43 in 2020. Sales and earnings figures both set record highs for the company.
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In addition to record quarterly results, The Container Store also managed to beat Wall Street consensus estimates. On the sales side, the company only beat a few percentage points. However, analysts had pegged earnings at $ 0.32 per share. Beating earnings expectations of $ 0.22 per share is big business, so it’s no wonder investors were excited about the company’s earnings update.
Now what
The Container Store is forecasting a $ 0.05 per share drop in year-over-year profits for its fiscal third quarter. So today’s good news was good, but the business suddenly isn’t that much different from what it was a day ago. That said, the quarterly update also noted that the company has 94 stores, one more than a year ago. And this is perhaps an even bigger result of today’s profits – The Container Store was able to grow its business, despite a terrible time for retailers in 2020, and it still has a fairly modest number of stores. There will likely be a long line of growth ahead.
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