Below is The Container Store Group Inc.’s (NYSE:TCS) Third Quarter Earnings Call held on Thursday, January 8, 2015, 4:30 PM ET. The Container Store reported comp store sales for the third quarter of fiscal 2014 ended November 29, 2014 to date including the discussion of operational initiatives, product performances, and financial highlights for the past three quarters and beyond.
The Container Store Group Inc. (NYSE:TCS) is a leading retailer of storage and organization products in the United States. Today, the company has 69 retail stores nationwide with over 10,000 product offerings. As of the third quarter of 2014, the Company had a net sale of $190.9 million and an adjusted net income of $3.2 million or $0.07 per adjusted diluted common share. The Container Store is also known to foster an “employee first” culture, which is the foundation of its relationships to the employees, vendors, consumers, investors, and surrounding communities.
Farah Soi – IR, Integrated Corporate Relations, Inc.
Kip Tindell, III – CEO and Chairman, The Container Store
Melissa Reiff – President, COO and Director, The Container Store
Jodi Taylor – CFO, The Container Store
Chris Horvers – JP Morgan
Joshua Siber – Morgan Stanley
John Heinbockel – Guggenheim Securities
Matt Nemer – Wells Fargo
Aram Rubinson – Wolfe Research LLC
Dan Binder – Jefferies LLC
Lee Giordano – CRT Capital Group
Denise Chai – Bank of America Merrill Lynch.
Greetings and welcome to The Container Store third quarter 2014 earnings conference call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions). As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Farah Soi. Thank you, Farah. You may begin.
Farah Soi, IR, ICR Inc.
Thank you, operator. Good afternoon everyone and thanks for joining us today for The Container Store’s third quarter fiscal year 2014 earnings call. On today’s call are Kip Tindell, Chairman and Chief Executive Officer, Melissa Reiff, President and Chief Operating Officer, and Jodi Taylor, Chief Financial Officer. After Kip, Melissa, and Jodi have made their formal remarks, we will open the call to questions.
I need to remind you that certain comments made during this call may constitute forward-looking statements and are made pursuant to and within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements. Those risks and uncertainties are referred to in The Container Store’s press release issued today. The forward-looking statements made today are as of the date of this call, and The Container Store does not undertake any obligation to update their forward-looking statements.
Finally, the speakers may refer to certain adjusted or non-GAAP financial measures on this call. A reconciliation schedule showing the GAAP versus non-GAAP financial measures is available in The Container Store’s press release issued today. If you do not have a copy of today’s press release, you may obtain one by visiting the Investor Relations page of the website at www.containerstore.com.
I will now turn the call over to Kip. Kip?
Kip Tindell, CEO and Chairman, The Container Store
Thank you, Farah, and I hope everybody had a great wonderful holiday and start for the New Year. As you saw in our press release, adjusted net income was $3.2 million or $0.07 per adjusted diluted common share in the third quarter of fiscal 2014, meeting consensus estimates. Net sales were $190.9 million, up 1.4% over third quarter last year. Company comparable store sales for the third quarter were down 3.5% compared to last year, which was at the low end of our guidance of flat to negative low single digits. However, fourth quarter to date, comparable store sales are up 2.7%. Online sales increased 13.2% for the third quarter compared to the third quarter of last year.