What happened
A double-digit fall in stock price was in the box for The Container Store (TCS +0.00%) on Wednesday. The specialty retailer's shares fell by almost 12% in value across the day after it unveiled its latest set of quarterly results.
So what
After market hours on Tuesday, The Container Store published its second-quarter results, and they weren't all that pleasing. For the period, net sales slipped by over 1% year over year to just under $273 million. That was on the back of a 0.8% drop in comparable-store sales.
On the bottom line, The Container Store's non-GAAP (adjusted) net income came in at $13.8 million, or $0.27 per share. That also represented a decline from the same period a year ago, when the company posted a $27.2 million adjusted profit.
Neither headline figure met analyst expectations, although the two misses weren't too dramatic. On average, prognosticators following the company estimated it would book nearly $284 million on the top line and an adjusted, per-share net income of $0.28.
In its earnings release, the retailer attributed the erosion in fundamentals to lower sales in its general merchandise categories and macroeconomic factors such as inflation.
OTC: TCS
Key Data Points
Now what
The Container Store proffered guidance for its current third quarter. The company expects it will post net sales of $240 million to $250 million and land in the black on the bottom line with a $0.02 to $0.07 per-share profit.
These numbers, however, are notably below the collective analyst estimates of $272 in revenue for the period and $0.25 per share in net income.
