Container Store posts quarterly loss, shares fall
Jan 7 (Reuters) - Storage products retailer Container Store Group Inc reported a third-quarter loss, hurt by costs associated with its initial public offering, sending its shares down 9 percent after the bell.
Container Store, whose shares doubled in its market debut in November, reported a net loss of $9.5 million, or $1.39 per share, compared with a profit of $6.9 million, or $5.32 per share, a year earlier.
The company said its net loss included $14.6 million of IPO-related stock-based compensation expense.
However, on an adjusted basis, Container Store reported a profit of 11 cents per share in the quarter ended Nov. 30. Analysts on average had expected a profit of 8 cents per share, according to Thomson Reuters I/B/E/S.
Container Store, established in Dallas in 1978, operates 62 stores in 22 states and the District of Columbia. Its rivals include Wal-Mart Stores Inc, Bed Bath & Beyond Inc and privately owned Crate & Barrel.
Container Store forecast full-year revenue of $754 million, below the average analyst estimate of $756.2 million.
The company said it expects adjusted earnings of 40 cents per share, above analysts' estimates of 38 cents per share.
Third-quarter sales rose 7.3 percent to $188.3 million. Analysts on average had expected sales of $188.9 million. Comparable-store sales were up 4.7 percent.
Coppell, Texas-based Container Store's shares were at $41.99 after the bell, down from the closing price of $45.79 on the New York Stock Exchange on Tuesday.