Shares of The Container Store Group took a hit after the company lowered its sales outlook for the year following the release of its fiscal third-quarter results.
The stock saw a 7.7% decline to $1.57 in after-hours trading, after experiencing a 4.9% increase at the close of the market. Year-to-date, shares have fallen by 26%.
During the third quarter, the company, based in Coppell, Texas, reported a sales decrease of 14.8%, totaling $214.9 million. Comparable store sales were down nearly 17%, and general merchandise experienced a decline of 20.4%.
As a result of these figures, The Container Store Group has adjusted its sales forecast for fiscal year 2024 to $842 million to $847 million, compared to its previous outlook of $870 million to $885 million.
The company now expects its comparable sales to see a low-twenties decline, as opposed to the prior projection of a high-teens decrease. Additionally, it anticipates a wider loss on both an adjusted and unadjusted basis.
Chief Executive Satish Malhotra attributed the decline in sales to weakness in general merchandise. However, he assured that the company would diligently manage expenses and capital.
During the third quarter, The Container Store Group reported a loss of $6.4 million, equivalent to 13 cents per share, compared to a profit of $4.2 million, or 8 cents per share, in the same period the previous year.
After accounting for one-time items, the company's loss per share stood at 8 cents, which is wider than the 7-cent loss that analysts had forecasted, according to FactSet.
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