Shares of The Container Store (TCS -1.39%) were tumbling more than 10% lower despite the storage specialist reporting fiscal fourth-quarter results that handily beat Wall Street's expectations.
The Container Store said quarterly sales surged over 30% to $314.7 million while adjusted earnings hit $0.71 per share, nearly three times more than the $0.26 per share it recorded a year ago.
Analysts, though, had forecast just $0.59 per share in earnings, so the downdraft in its stock is likely due to the overall malaise of the market, which itself was falling today, though not by nearly the same magnitude.
While fourth-quarter results benefited from a 53rd selling week, It only added $17.7 million to sales and $0.07 to per-share earnings, meaning The Container Store still would have beat Wall Street's consensus by a good margin.
The storage leader expects fiscal first-quarter sales to jump even higher, rising by as much as 50% over the year-ago period with adjusted profits between $0.08 and $0.09 per share. Investors won't be able to make a comparison to the year-ago figures though, since they were severely impacted by the pandemic when all of its retail stores were forced to close.