The Container Store Announces 2016 Fiscal Plans

This week, The Container Store Group Inc. (Coppell, Texas) announced its fourth-quarter 2015 earnings, it's full fiscal 2015 results, as well as its plans for 2016.

The storage solutions retailer's comparable store sales for Q4 2015 were up 0.2 percent compared to Q4 2014, and its consolidated net sales were up 3.5 percent, exceeding the company's guidance of a 3- to 5-percent sales growth, marking its third consecutive quarter of positive comparable store sales.

With a 6.6-percent increase in its selling, general and administrative (SG&A) expenses in 2015, as compared to 2014, the company has also announced its plans to freeze wages, including a 401k match freeze and reduction in payroll. “These expense initiatives are expected to contribute to our projected earnings per share for fiscal 2016 at nearly double or triple the levels of fiscal 2015,” said Kip Tindell, chair, ceo, The Container Store, in the company's press release.

Looking ahead, the company plans to prioritize its initiatives in the custom closet market, which will include improvements in its selling process and employee sales training, striving to provide an enhanced online and in-store experience with the brand.

The retailer says it is committed to the importance of new store growth in 2016, with eight store openings planned, including one relocation, within the year. In 2017, The Container Store intends to pilot a reduced square footage format in select stores with smaller markets to maximize profitability.

“Fiscal 2015 was an investment year for our company, as we strategically, and importantly, put extremely focused and significant financial, human and operational resources into key initiatives designed to transform our business by addressing the changing retail landscape and setting the stage for long-term growth,” said Tindell.