COPPELL, Texas -- The Container Store released third quarter financial results, and its closet line, TCS Closets, continues to be one of its bright spots. The luxury line's growth was better than expected for the quarter even as the company had to lower overall profit expectations due to unexpected expenses related to healthcare, payroll and distribution.

Selling closets is in our wheelhouse. Our goal is to dominate the closet category. - Kip Tindell

“We made excellent strides in the third quarter with virtually all markets realizing greater TCS Closets comparable store sales benefit compared to the second quarter,” said Kip Tindell, Chairman and Chief Executive Officer. "Selling closets is in our wheelhouse and our goal is to dominate the closet category. There is no other comparable retailer doing this high-ticket, high-quality, custom closet business."

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"The company also offers the complete solution for our customers – not just the closet, but the full array of closet organization products that accompany the closet, as well as a national footprint and millions of customers coming through the door each year,” he noted.

While The Container Store's primary focus for the TCS line has been closet organization, customer demand and current trends are prompting the company to expand the TCS Closets product collection to other areas of the home, Tindell added.

TCS Closets were available in just seven stores at the start of the fiscal year and in 74 stores by the end of the third quarter. In December 2015, the company completed the rollout to all stores as scheduled, which included a complete remodel of the custom closet department featuring new displays for TCS Closets and its elfa line. TCS Closets average ticket continues to exceed $10,000 and the average number of TCS Closets transactions per week, per store continues to steadily increase as well.

The rollout of of The Container Store's home organizing service -- Contained Home -- to all stores was completed in December. The average ticket for that service is in excess of $2,500 to date, the company says. And, POP! Perfectly Organized Perks, the company’s customer engagement program, has enrolled more than 3 million POP! Stars since its launch and continues to add approximately 25,000 POP! Stars per week.

The Container Store expects to open a total of 10 new stores (including one relocation) in the 2015 fiscal year achieving its targeted 12% square footage growth. Also, consolidated net sales for the third quarter of fiscal 2015 was $197.2 million, up 3.3% compared to the third quarter of fiscal 2014.