Container Store Q2 Profit Down

(RTTNews) - Container Store Group Inc. (TCS), a retailer of storage products, Monday reported a drop in profit for the second quarter despite revenue growth, as margins narrowed and expenses increased.

Coppell, Texas-based Container Store's net income for the quarter dropped to $2.67 million or $0.06 per share from $7.00 million or $0.14 per share last year. On average, 11 analysts polled by Thomson Reuters estimated earnings of $0.07 per share for the quarter. Analysts' estimates typically exclude one-time items.

Net sales for the second quarter rose to $195.5 million from $193.2 million last year. Analysts had a consensus revenue estimate of $197.71 million for the quarter.

Comparable store sales for the second quarter were up 0.1 percent compared to the second quarter last year. Gross margin for the quarter was 58.2 percent, a decline of 60 basis points from last year. Selling, general and administrative expenses increased by 3.7% to $93.6 million from last year.

Looking forward to the fiscal year 2015, the company continues to expect earnings of $0.30 to $0.38 per share and net sales to be $800 million to $815 million. Analysts currently estimate earnings of $0.09 per share on revenues of $201.71 million for the quarter.

Analysts currently estimate earnings of $0.34 per share and revenues of $201.71 million for the year.

However, it now expects comparable store sales to be down 1 percent to flat compared to prior outlook of down 2 percent to flat.

TCS closed Monday's trading at $15.57, up $0.43 or 2.84%, on the NYSE. The stock, however, slipped $0.63 or 4.05% in the after-hours trade.