The COVID-19 pandemic has had an impact on The Container Store’s overall net sales for the fourth quarter of fiscal year 2019. In its preliminary results, the company reported consolidated net sales are estimated to be $241.3 million, down 4.7 percent compared to the fourth quarter of 2018. However, while comparable store sales are estimated to decrease 3.6 percent, Custom Closet sales are expected to increase 1.5 percent.
For the fiscal year 2019, the company’s consolidated net sales are estimated to be $916.0 million, up approximately 2.3% compared to fiscal 2018. Comparable store sales are estimated to increase 2.9% with Custom Closets sales expected to be up 7.6%. The Container Store opened two custom closet retail locations last year in Los Angeles and Dallas, Texas.
“Our fourth quarter performance was tracking to our expectations until the last few weeks of the quarter when the COVID-19 pandemic resulted in disruption to our operations, including store closures,” said Melissa Reiff, chairwoman and CEO.
“We have executed difficult but necessary actions in managing our costs, while simultaneously maximizing the opportunities for our customers with our fully-integrated website, click & pickup/contactless curbside delivery service and in-store appointments in select stores. Since the beginning of fiscal 2020, which began on March 29, online customer orders have nearly quadrupled the level of the prior year. While we are not providing financial guidance for fiscal 2020 at this time, with the strength of our online business and the swift cost actions we are implementing, I feel confident in our ability to successfully navigate this unprecedented environment,” she added.
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