The Container Store Group’s net loss widened in the fiscal first quarter amid lower retail and third-party net sales.
At $14.7 million, the loss for the quarter ended June 29 compared with $11.8 million in the same period a year ago.
Consolidated net sales declined 12.2 per cent to $181.9 million as The Container Store’s retail sales fell 12.1 per cent to $171.5 million and Elfa International AB third-party net sales dropped 13.7 per cent to $10.3 million.
Comparable store sales slid 13.7 per cent with general merchandise plummeting 21.8 per cent.
“Our first quarter sales results continued to be impacted by ongoing macro-related headwinds though we were encouraged by sequential monthly improvement over last year in general merchandise and Custom Spaces,” said Satish Malhotra, CEO and president of The Container Store.
“While we cannot control the current macro environment, we are pleased with the progress we are making on our initiatives and continue to believe in the opportunities ahead as more and more customers realize the power of organization.”
The company ended the quarter with 103 stores after opening one and relocating one.
After the end of the quarter, the company opened a new store in Ashburn, Virginia and plans to open two more and close over the rest of the fiscal year.
Last May, the company received a warning from the New York Stock Exchange after its stock price fell under $1 over a consecutive 30-day trading period.
