Container Store reports 1Q loss

The Container Store Group, Inc.is a specialty retailer of storage and organization products in the United States.

Container Store (The) (NYSE:TCS) is expected to post current fiscal quarter earnings per share of $-0.12 when the company releases earnings later today, according to the consensus analyst numbers.

Container Store Group (NYSE:TCS) traded up 1.16% on Tuesday, hitting $17.50.

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.

The analyst consensus price target for Container Store (The) (NYSE:TCS) is at $18.2.

Container Store emerged as one of the success stories following its initial public offering in 2013 as shares, priced at $18, surged to $36.20. Tindell pointed to big increases in comparable-store sales increases at stores that have had either TCS Closets or Contained Home for the longest period of time, with Dallas-area stores seeing a three percentage point bump in comps from TCS Closets alone. Adjusting for the West Coast port delays, company officials said sales at established stores would have been approximately flat for the quarter.

Gross margin for this quarter was 58.5%, up 40 basis points compared to the first quarter of fiscal 2014.

In local currency, Elfa third-party sales fell 5.8% from the year earlier, largely as sales fell in Norway and Russian Federation. 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. It operates in two segments, TCS and Elfa. Analysts at JPMorgan Chase & Co. reiterated an “overweight” rating and set a $21.00 price target (down previously from $25.00) on shares of Container Store Group in a research note on Sunday, May 3rd.

Container Store blamed a couple of major factors for the bulk of its declines. The stock jumped more than 6% in the first hour following the announcement, and shareholders seem ready to believe that the company’s efforts to build up its business might finally produce stronger results.

Access Investor Kit for Amazon.com, Inc. 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.