Tue, May 28, 10:31 AM (60 days ago)
For the fiscal year ended March 30, 2024, The Container Store Group, Inc. (TCS) reported consolidated net sales of $847.8 million, a decrease from $1,047.3 million in the previous year. The decline was driven by a 19.7% drop in comparable store sales. Gross profit was $488.8 million with a gross margin of 57.7%. Selling, general, and administrative expenses were $439.5 million, representing 51.8% of net sales. Significant impairment charges of $97.3 million were recorded, primarily due to continued macroeconomic impacts, including a $63.8 million impairment of the TCS trade name and a $10.1 million impairment of the Elfa trade name. The company also incurred $7.4 million in other expenses. Net loss for the year was $103.3 million, or $2.09 per diluted share, compared to a net loss of $158.9 million in the prior year. Adjusted EBITDA was $48.1 million, down from $115.4 million, and adjusted net loss was $15.9 million, or $0.32 per diluted share. TCS's strategic priorities include deepening customer relationships, expanding reach, and strengthening capabilities. The company opened five new stores in fiscal 2023 and plans to open four more in fiscal 2024. However, economic challenges and increased costs pose risks to future performance.