After getting hurt by the COVID-19 pandemic at the beginning of its 2020 fiscal year, The Container Store made a sharp turn-around in the 2021 first quarter.
Net income was $17.7 million, or 35 cents per diluted share, in the quarter compared to a net loss of $16.7 million, or 34 cents per diluted share, in the 2020 period. Adjusted for one-time charges, net income was $18.2 million, or 36 cents per diluted share, as compared to an adjusted net loss of $15.5 million, or 32 cents per diluted share, in the year-before quarter.
Adjusted diluted earnings per share for the first quarter topped a MarketBeat-published analyst average estimate of nine cents.
Consolidated net sales were $245.3 million, up 61.7% versus the year-earlier period, Container Store reported. The company did not include comparable sales figures due to store closures and related exceptional circumstances caused by the pandemic. Container Store net sales were $228.7 million, up 64.1% in the quarter year over year, the company noted, with Custom Closets, up 58.6%, contributing 2,910 basis points of the increase and other product categories, up 69.5%, contributing 3,500 basis points. Elfa third-party net sales were $16.6 million, up 34.8% versus the 2020 quarter. With the impact of foreign currency translation excluded, Elfa third-party net sales advanced 17.2%, according to Container Store.
Income from operations was $26.5 million versus a loss from operations of $18.6 million in the year-previous quarter.
Satish Malhotra, Container Store president and CEO, said in a first-quarter conference call that the growth of the company’s loyalty program and customer closets promotions contributed to first-quarter success, as did customer response to the new front of store merchandising focused on curated products.
Satish Malhotra, Container Store president and CEO, said in a first-quarter conference call that the growth of the company’s loyalty program and customer closets promotions contributed to first-quarter success, as did customer response to the new front of store merchandising focused on curated products at full price supported by before and after customer testimonial graphics. He said the new front of store presentation gives customers an opportunity to learn, discover and engage with key merchandise from Container Store’s kitchen and closet category.
In announcing the first-quarter results, Malhotra said, “We are very pleased to have delivered record-setting first-quarter results from both a net sales and profitability perspective. Our exceptional results were driven by a team commitment to transform the lives of customers through the power of organization, and alignment on executing key priorities alongside cost and promotional discipline. We are very encouraged by the early strides we are making on our strategic priorities of deepening our relationship with customers, expanding our reach and strengthening our capabilities. We are in the early stages of our path to $2 billion in net sales, but our progress to date further solidifies our confidence in our ability to drive strong results.”
