The Container Store Group has posted a 14.8 per cent year-on-year decline in sales for the third quarter, compared to the 19.4 per cent decrease in the second quarter.

Consolidated net sales were $214.9 million, with net sales in The Container Store retail business down 15.4 per cent to $202.5 million. Elfa third-party net sales dropped 4.2 per cent to $12.4 million, primarily due to a decline in Nordic markets.

The company’s comparable store sales plunged 16.8 per cent. According to president and CEO Satish Malhotra, general merchandise categories weighed on results with a 20.4 per cent decrease, while the Custom Spaces assortment – whose sales were down 9.2 per cent – outperformed. 

“Custom Spaces saw sequential improvement in comparable store sales declines from the second quarter driven by improved performance in our Elfa product line and strength in our premium, wood-based line, Preston,” Malhotra elaborated.

He added the company plans to further manage expenses and capital allocation with great discipline in the current landscape.

“We continue to lean into our competitive strengths and differentiation in Custom Spaces and complementary premium general merchandise, where we see significant growth opportunity.”

For the fiscal year ending March 30, The Container Store expects consolidated net sales of $842 – $847 million, lower than the previous outlook of $870 – $885 million. Comparable store sales decline is forecast to be in the low twenties.

As of December 30, the firm was operating 100 stores nationwide.