The Container Store Group, Inc. (NYSE:TCS) Q3 2022 Earnings Call Transcript

Christopher Horvers: Got it. And then just one quick follow-up question you talked about potential good guys in terms of freight and commodity costs, is that more showing up on the Elfa side, not the TCS side, the gross margin?

Jeff Miller: Yeah. So when you look at the gross margin for the quarter, while we did see more promotional activity this quarter and Q3, but we’ve benefited from a better mix. And to a lesser extent, we did benefit from lower freight costs, and we are seeing them come down and we expect to see more benefit in Q4 and go forward. It just takes time for us to average the lower freight costs and their inventories. And I would say that’s all in the TCS side. From an Elfa margin perspective, we saw an improvement there and that was really all driven by pricing.

Christopher Horvers: Got it. Understood. Thanks very much.

Satish Malhotra: Thanks, Chris.

Operator: Thank you. There are no further questions at this time. I’d like to turn the floor back over to Satish Malhotra for any closing comments.

Satish Malhotra: Yeah, once again, thank you so much for joining us today. We are on our mission on a path to deliver on our ambition of $2 billion in sales and we are committed to doing that. I wish you all the very great night.

Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.