The company shares have dropped -38.12% from its 1 Year high price.
Advertisement
“We rate CONTAINER STORE GROUP (TCS) a SELL”.
Shares of TCS closed Tuesday up 1.2% at $17.50 on a 52-week trading range of $15.49 to $27.65. On a different note, The Company has disclosed insider buying and selling activities to the Securities Exchange, The Officer (CEO OF ELFA) of Container Store Group, Inc., Von Mentzer Per sold 500 shares at $18.81 on January 27, 2015.
The Coppell, Texas, company warned in February that it was approaching 2015 as an investment year, shoring up spending to offer such things as free shipping on orders above $75 and a customer-financing program.
From looking at the way Container Store Group shares responded in after-hours trading, it’s clear that many investors were expecting less favorable results from the retailer. But the discount-driven retail climate along with increased competition from big-box stores like Wal-Mart Stores Inc. and IKEA and online retailers like Amazon.com and Wayfair Inc. have weighed down on the chain’s results.
Wall Street analysts polled by Zacks Research have given Container Store (The) (NYSE:TCS) a rating of 2.75 on a consensus basis.
In the latest period, sales at established stores fell 0.9%. The consensus estimate is for EPS of $0.32. Gross margin improved to 58.5% from 58.1% a year earlier. That’s exactly what Container Store ended up doing, with sales and earnings that raised hopes that the worst could finally be over for the company.
Advertisement
Its TCS segment consists of its retail stores, website and call center, while the Elfa segment designs and manufactures component-based shelving and drawer systems that are customizable for any area of the home, including closets, kitchens, offices and garages. The conversion of Elfa’s net sales into USA dollars, company officials said, lowered net sales by about $5.2 million. The line, launched in the Dallas/Fort Worth area, is now available in 36 stores. Last month, Container Store added another location in the Kansas City suburb of Overland Park, and it anticipates two more openings this quarter and six more by the end of the fiscal year. Container Store now operates 71 stores in the US. It’ll take time for Container Store to fully convince its investors that a turnaround is truly in place, but this quarter’s results were a much-needed step in the right direction.
