Specialty retail chain The Container Store Group says first-quarter performance is “in line” with its expectations due to the current macroeconomic environment.

For the quarter to July 1, consolidated net sales fell 21.1 per cent to $207.1 million while comparable store sales decreased by 19.9 per cent with general merchandise categories down by 20.5 per cent.

Online sales decreased by 15.8 per cent compared to the first quarter of the last fiscal year while adjusted EBITDA was $2.9 million in the quarter.

Satish Malhotra, CEO and president of The Container Store, said the business focussed on bringing merchandise newness and innovation and improving its in-store experience for customers in the quarter.

“We successfully executed our cost-cutting action plan that did not jeopardize our focus on customer experience.”

Malhotra added the company is updating its outlook to reflect current trends in the business.

“Even as we continue to navigate the challenges of the current environment, we are relentlessly focused on executing against the initiatives that will further solidify our category leadership position and drive our growth when market conditions normalize.”

The company expects to open six new small-format stores in this fiscal 2023 and three new stores in the upcoming year.