The Container Store’s net income soared by about 800% year-over-year during the fourth quarter of fiscal 2013, to $18.34 million from $2.09 million. A substantial drop in effective tax rate, as well as lower net interest expense, helped drive the impressive growth in net income.
Net sales slipped from $217.02 million to $216.82 million, while same-store sales climbed 1.4%. The company cited severe weather as reducing sales.
The Container Store plans to open six new stores in fiscal 2014, including locations in Cranston, R.I. (May 17), a relocated store in Oak Brook, Ill. (June 28), Los Angeles (Aug. 9), Murray, Utah (Oct. 18), Chicago (Nov. 15), and another site to be determined.
During 2014, The Container Store is expanding two new customer programs. Its POP! (Perfectly Organized Perks) customer engagement program, currently testing in California stores, that rewards customers with special communication, gifts and exclusive offers will roll out to all stores by the end of July. Additionally its AtHome personalized design and organization service, currently testing in select Texas stores, where expert organizers go directly into customers’ homes and design solutions for them, will launch in additional markets in Texas, as well as key markets such as Manhattan and Los Angeles.
In the full fiscal year 2013, The Container Store swung to a profit of $8.17 million from a net loss of $130 million. Net sales rose 6% to $217.02 million, from $216.82 million. Same-store sales improved 2.9%.
For fiscal 2014, consolidated net sales are expected to be $827 to $837 million, based on our announced store openings and an increase in comparable store sales of 3% to 4%. Net income is expected to be $0.56 to $0.61 per diluted common share.
“We’re a solutions-based, not items-based form of retail,” said Container Store chairman and CEO Kip Tindell. “And when you’re selling solutions made up of exclusive proprietary products that you simply can’t find anywhere else, it helps to insulate you from competition, including the giant Internet retailers. Consumers can’t ‘showroom’ us because you simply can’t ‘showroom’ exclusive or proprietary products and you can’t ‘showroom’ solutions.”