Container Store posts quarterly loss, shares fall

Tue Jan 7, 2014 5:54pm EST

Shopping carts sit at a Container Store outlet in New York November 1, 2013. REUTERS/Andrew Kelly

Shopping carts sit at a Container Store outlet in New York November 1, 2013.

Credit: Reuters/Andrew Kelly

(Reuters) - Storage products retailer Container Store Group Inc (TCS.N) 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 November 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 (WMT.N), Bed Bath & Beyond Inc (BBBY.O) 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.

(Reporting by Maria Ajit Thomas in Bangalore; Editing by Maju Samuel)

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