Container Store Profit Misses Estimate, Outlook Weak; Stock Down 24%

(RTTNews) - Container Store Group Inc (TCS), a retailer of storage and organization products, on Monday reported fourth-quarter net earnings to equity holders of $13 million or $0.27 per share compared with $18.3 million or $0.38 per share last year.

Excluding items, adjusted earnings for the quarter were $0.24 per share compared with $0.22 per share a year ago.

Revenues for the quarter were $224.3 million compared with $216.8 million in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $0.31 per share on revenues of $233.6 million for the quarter. Analysts' estimates typically exclude special items.

The company said results were hurt by inclement winter weather and foreign exchange headwinds.

Company comparable store sales for the quarter were down 0.8%.

Gross margin was 57.8%, a decrease of 40 basis points from a year ago.

For the first quarter, the company expects a loss of $0.14 to $0.12 per share, and comparable store sales to be down 3% to 4%. Analysts expect a loss of $0.06 per share.

For the full year 2015, the company now expects earnings of $0.30 to $0.38 per share on revenues of $800 million to $815 million, and comparable store sales change of a negative 2% to 0%.

Analysts expect earnings of $0.56 per share on revenues of $873 million for the year.

The company said its outlook assumes costs related to its investment activities as well as the impact of West Coast port delays.

Shares of the company were losing $5.19 or 23.93% at $16.50 in after-hours trade on the NYSE.