Jan 7 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.