The Container Store Group, Inc. (TCS) Bundle
A Brief History of The Container Store Group, Inc.
Company Overview
The Container Store Group, Inc. (TCS) is a leading retailer specializing in storage and organization products. Founded in 1978, the company has grown to operate over 100 stores across the United States and has expanded its product offerings to include custom storage solutions and a range of home organization products.
Financial Performance
As of September 28, 2024, TCS reported the following financial highlights:
| Financial Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Sales | $196,575,000 | $219,731,000 |
| Cost of Sales | $87,537,000 | $93,064,000 |
| Gross Profit | $109,038,000 | $126,667,000 |
| Net Loss | $(16,106,000) | $(23,653,000) |
| Net Loss per Share | $(4.85) | $(7.17) |
| Adjusted EBITDA | $3,902,000 | $17,026,000 |
Sales Trends
In the thirteen weeks ended September 28, 2024, TCS experienced a decline in net sales of $23,156,000, or 10.5%, compared to the same period in 2023. Key contributors included:
- Comparable store sales decreased by 12.5%.
- Online sales saw a significant decrease of 13.7%.
- Elfa third-party net sales also declined by 12.9%.
Cost Structure
The cost of sales as a percentage of net sales for Q2 2024 was 44.5%, compared to 42.4% in Q2 2023. This increase reflects higher promotional activity and a less favorable product mix.
Operating Expenses
Selling, general, and administrative (SG&A) expenses in Q2 2024 totaled $105,214,000, which represented 53.5% of net sales, an increase from 49.7% in Q2 2023. This increase was attributed to fixed cost deleverage on lower sales and increased marketing spend.
Balance Sheet Highlights
As of September 28, 2024, TCS reported total liabilities of $836,372,000, with total shareholders' equity at $132,832,000. The key components are as follows:
| Liability Type | Amount |
|---|---|
| Long-term Debt | $229,780,000 |
| Noncurrent Operating Lease Liabilities | $372,122,000 |
| Other Long-term Liabilities | $6,862,000 |
Market Position and Challenges
The Container Store continues to face challenges including increased competition in the retail sector, changes in consumer preferences, and economic pressures impacting consumer spending. The company is focusing on enhancing its online presence and optimizing its store footprint to drive future growth.
A Who Owns The Container Store Group, Inc. (TCS)
Current Ownership Structure
As of 2024, The Container Store Group, Inc. (TCS) is publicly traded on the New York Stock Exchange under the ticker symbol "TCS." The ownership of TCS is primarily divided among institutional investors, individual shareholders, and company insiders.
Major Shareholders
The following table summarizes the major shareholders of The Container Store Group, Inc. as of September 28, 2024:
| Shareholder | Type of Ownership | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Leonard Green & Partners, L.P. | Institutional Investor | 1,823,870 | 54.8% |
| BlackRock, Inc. | Institutional Investor | 250,000 | 7.5% |
| The Vanguard Group, Inc. | Institutional Investor | 200,000 | 6.0% |
| Insider Holdings (Management) | Insider | 150,000 | 4.5% |
| Other Individual Shareholders | Retail Investors | 1,056,295 | 31.2% |
Recent Changes in Share Ownership
Recent filings indicate that Leonard Green & Partners has maintained its majority stake in TCS, while BlackRock and Vanguard have slightly adjusted their holdings. Insiders continue to hold a significant portion of shares, reflecting confidence in the company's future performance.
Stock Performance and Market Capitalization
As of September 28, 2024, The Container Store Group, Inc. reported a market capitalization of approximately $200 million, with stock trading in the range of $60 to $70 per share over the past year.
Financial Data Overview
The following table outlines key financial metrics for The Container Store Group, Inc. for the fiscal year ending September 28, 2024:
| Metric | Value |
|---|---|
| Total Revenue | $378,436,000 |
| Net Loss | ($30,838,000) |
| Gross Profit | $215,133,000 |
| Total Assets | $969,204,000 |
| Total Liabilities | $836,372,000 |
| Total Shareholders' Equity | $132,832,000 |
Insider Transactions
Insider transactions have occurred, with some management members buying shares to increase their stake, reinforcing their commitment to the company. The overall trend shows a mix of buying and selling, typical for publicly traded companies.
Conclusion on Ownership Trends
Ownership of The Container Store Group, Inc. remains concentrated among a few institutional investors, with a notable percentage held by insiders. This concentration suggests a stable ownership structure, with potential implications for corporate governance and strategic direction.
The Container Store Group, Inc. (TCS) Mission Statement
The Container Store Group, Inc. (TCS) aims to provide customers with the best products and solutions to help them organize their lives. The company's mission is centered around delivering exceptional customer service, offering a wide variety of innovative products, and creating an engaging shopping experience. The Container Store focuses on a culture of employee empowerment and continuous improvement, which is essential for achieving its business objectives.
Financial Overview
As of September 28, 2024, The Container Store reported a net loss of $30,838,000 for the twenty-six weeks ended, compared to a net loss of $35,490,000 for the same period in the previous year. The company also experienced a decline in net sales, which totaled $378,436,000 for the twenty-six weeks ended September 28, 2024, down from $426,843,000 in the prior year, reflecting an 11.3% decrease.
| Financial Metrics | 2024 (26 Weeks) | 2023 (26 Weeks) | Change (%) |
|---|---|---|---|
| Net Sales | $378,436,000 | $426,843,000 | -11.3% |
| Net Loss | $(30,838,000) | $(35,490,000) | +13.6% |
| Gross Profit | $215,133,000 | $241,216,000 | -10.8% |
| Gross Margin | 56.8% | 56.5% | +0.3% |
| SG&A Expenses | $210,564,000 | $220,650,000 | -4.6% |
| Net Loss per Share | $(9.30) | $(10.79) | +13.8% |
Operational Highlights
For the thirteen weeks ended September 28, 2024, The Container Store's net sales amounted to $196,575,000, down from $219,731,000 in the same quarter of 2023, representing a decrease of 10.5%. The comparable store sales also reflected a decline of 12.5%, with general merchandise categories suffering the most significant drop.
Sales Breakdown
| Sales Category | 2024 (13 Weeks) | 2023 (13 Weeks) | Change (%) |
|---|---|---|---|
| TCS Net Sales | $186,815,000 | $208,525,000 | -10.4% |
| Elfa Third-Party Net Sales | $9,760,000 | $11,206,000 | -12.9% |
| Total Net Sales | $196,575,000 | $219,731,000 | -10.5% |
Key Performance Indicators
The company's gross margin for the twenty-six weeks ended September 28, 2024, was reported at 56.8%, slightly up from 56.5% in the previous year. The increase in gross margin was attributed to lower freight costs, although promotional activity increased. Selling, general, and administrative (SG&A) expenses decreased by 4.6% year-over-year, reflecting a more efficient cost structure.
Liquidity Position
As of September 28, 2024, The Container Store had cash reserves of $66,123,000, significantly improved from $10,195,000 in the prior year. The company also had additional availability under its Revolving Credit Facility, amounting to approximately $19,557,000.
Future Outlook
The Container Store anticipates total capital expenditures in the range of $20,000,000 to $25,000,000 for fiscal 2024, primarily for new store openings and technology investments. The company is focused on enhancing its operational efficiencies and improving the customer experience to drive future growth.
How The Container Store Group, Inc. (TCS) Works
Business Overview
The Container Store Group, Inc. (TCS) operates as a retailer specializing in storage and organization products. As of September 28, 2024, TCS had a total of 103 stores across the United States, with a focus on providing innovative solutions for home and office organization.
Financial Performance
For the thirteen weeks ended September 28, 2024, TCS reported net sales of $196,575,000, a decrease of 10.5% compared to $219,731,000 for the same period in 2023. For the twenty-six weeks ended September 28, 2024, net sales totaled $378,436,000, down 11.3% from $426,843,000 in 2023.
| Period | Net Sales ($000) | Cost of Sales ($000) | Gross Profit ($000) | Net Loss ($000) | Net Loss per Common Share |
|---|---|---|---|---|---|
| Thirteen Weeks Ended September 28, 2024 | 196,575 | 87,537 | 109,038 | (16,106) | (4.85) |
| Thirteen Weeks Ended September 30, 2023 | 219,731 | 93,064 | 126,667 | (23,653) | (7.17) |
| Twenty-Six Weeks Ended September 28, 2024 | 378,436 | 163,303 | 215,133 | (30,838) | (9.30) |
| Twenty-Six Weeks Ended September 30, 2023 | 426,843 | 185,627 | 241,216 | (35,490) | (10.79) |
Cost Structure
In the twenty-six weeks ended September 28, 2024, TCS reported a gross margin of 56.8%, compared to 56.5% in the previous year. Selling, general, and administrative expenses were $210,564,000, representing 55.6% of net sales, up from 51.7% the previous year.
| Expense Category | Amount ($000) | % of Net Sales |
|---|---|---|
| Gross Profit | 215,133 | 56.8% |
| Selling, General, and Administrative Expenses | 210,564 | 55.6% |
| Stock-Based Compensation | 514 | 0.1% |
| Depreciation and Amortization | 21,219 | 5.6% |
Cash Flow and Liquidity
For the twenty-six weeks ended September 28, 2024, TCS generated net cash provided by operating activities of $4,702,000, compared to $20,691,000 in the previous year. Cash at the end of the period was $66,123,000.
| Cash Flow Component | Amount ($000) |
|---|---|
| Net Cash Provided by Operating Activities | 4,702 |
| Net Cash Used in Investing Activities | (14,504) |
| Net Cash Provided by Financing Activities | 54,379 |
| Cash at End of Period | 66,123 |
Debt and Financing
As of September 28, 2024, TCS had total liabilities of $836,372,000, which included long-term debt of $229,780,000. The company has a Senior Secured Term Loan Facility with an outstanding balance of $160,321,000.
| Liability Category | Amount ($000) |
|---|---|
| Total Current Liabilities | 211,653 |
| Total Noncurrent Liabilities | 624,719 |
| Total Liabilities | 836,372 |
| Long-Term Debt | 229,780 |
Store Operations
As of September 28, 2024, TCS operated 103 stores. The company continues to focus on enhancing its retail footprint while adapting to market trends and consumer preferences.
How The Container Store Group, Inc. (TCS) Makes Money
Revenue Streams
The Container Store Group, Inc. generates revenue primarily through retail sales of storage and organization products. For the twenty-six weeks ended September 28, 2024, TCS reported net sales of $378,436,000, a decrease of 11.3% compared to $426,843,000 for the same period in 2023.
| Period | Net Sales ($000) | Year-over-Year Change (%) |
|---|---|---|
| 26 Weeks Ended September 28, 2024 | 378,436 | -11.3 |
| 26 Weeks Ended September 30, 2023 | 426,843 | N/A |
Comparable Store Sales
For the twenty-six weeks ended September 28, 2024, comparable store sales decreased by 13.1%, largely attributed to a 20.2% decline in general merchandise categories.
| Metric | Value |
|---|---|
| Comparable Store Sales Change (%) | -13.1 |
| General Merchandise Categories Decline (%) | -20.2 |
Gross Profit and Gross Margin
The gross profit for TCS for the twenty-six weeks ended September 28, 2024, was $215,133,000, representing a gross margin of 56.8%, slightly up from 56.5% in the previous year.
| Period | Gross Profit ($000) | Gross Margin (%) |
|---|---|---|
| 26 Weeks Ended September 28, 2024 | 215,133 | 56.8 |
| 26 Weeks Ended September 30, 2023 | 241,216 | 56.5 |
Selling, General, and Administrative Expenses (SG&A)
SG&A expenses for the twenty-six weeks ended September 28, 2024, were $210,564,000, which is 55.6% of net sales. This is an increase from 51.7% in the same period in 2023.
| Period | SG&A Expenses ($000) | SG&A as % of Net Sales |
|---|---|---|
| 26 Weeks Ended September 28, 2024 | 210,564 | 55.6 |
| 26 Weeks Ended September 30, 2023 | 220,650 | 51.7 |
Net Loss
For the twenty-six weeks ended September 28, 2024, TCS incurred a net loss of $30,838,000, compared to a net loss of $35,490,000 for the same period in 2023.
| Period | Net Loss ($000) |
|---|---|
| 26 Weeks Ended September 28, 2024 | (30,838) |
| 26 Weeks Ended September 30, 2023 | (35,490) |
Interest Expense
The interest expense for the twenty-six weeks ended September 28, 2024, was $11,512,000, an increase from $10,205,000 in the previous year.
| Period | Interest Expense ($000) |
|---|---|
| 26 Weeks Ended September 28, 2024 | 11,512 |
| 26 Weeks Ended September 30, 2023 | 10,205 |
Cash Flow and Liquidity
Net cash provided by operating activities for the twenty-six weeks ended September 28, 2024, was $4,702,000, contrasting with $20,691,000 for the same period in 2023. The company reported negative free cash flow of $10,568,000 for the period.
| Metric | Value ($000) |
|---|---|
| Net Cash Provided by Operating Activities | 4,702 |
| Net Cash Used in Investing Activities | (14,504) |
| Free Cash Flow | (10,568) |
Outlook and Future Performance
For fiscal 2024, TCS expects total capital expenditures to be in the range of $20 million to $25 million, primarily for new store openings and technology investments. The company opened one new store in fiscal 2024 and plans to open two additional stores while closing one.
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Article updated on 8 Nov 2024
Resources:
- The Container Store Group, Inc. (TCS) Financial Statements – Access the full quarterly financial statements for Q2 2024 to get an in-depth view of The Container Store Group, Inc. (TCS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The Container Store Group, Inc. (TCS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.