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Container Store Group Q3 net sales up 7.3%

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Staff writer ▼ | January 9, 2014
The Container Store Group announced financial results for the third quarter ended November 30, 2013. Net sales increased by 7.3% to $188.3 million from $175.4 million in the third quarter of fiscal 2012.
Container Store Group
Container Store GroupThe Container Store Group announced financial results for the third quarter ended November 30, 2013. Net sales increased by 7.3% to $188.3 million from $175.4 million in the third quarter of fiscal 2012.


Comparable store sales increased by 4.7%. Net sales in The Container Store retail business were up 10.8% to $163.7 million and Elfa third party sales decreased 11.3% to $24.6 million.

Gross margin was 60%, an increase of 60 basis points compared to the third quarter of fiscal 2012. Net sales at The Container Store retail business represented 87% of consolidated sales in the third quarter fiscal 2013, as compared to 84.2% in third quarter fiscal 2012. Since gross margin percentage is higher in The Container Store retail business, this shift in sales mix led to an improvement in consolidated gross margin.

Selling, general and administrative expenses (SG&A) increased by 8.7% to $88.8 million from $81.7 million in the third quarter of fiscal 2012. SG&A as a percentage of net sales increased 60 basis points primarily due to increases in expenses incurred in preparation for the Initial Public Offering (IPO), expenses associated with operating as a public company as well as a timing shift in direct mail expenses.

The company opened two new stores and ended the quarter with 63 stores in 22 states and the District of Columbia. The company has opened six new stores including the relocation of one undersized, older format store in fiscal 2013. Net interest expense increased to $5.8 million from $5.1 million in the third quarter of fiscal 2012.


 

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