Container Store stock falls 6% as retailer sees fewer customers in stores

Shares of Container Store Group Inc. dropped more than 6% in the extended session Tuesday after the retailer reported mixed fiscal second-quarter earnings and said foot traffic in its stores is slowing. Container Store earned $15.7 million, or 31 cents a share, compared with $27.2 million, or 54 cents a share, in the year-ago period. Adjusted for one-time items, the retailer earned 27 cents a share. Sales fell 1.2% to $272.7 million, with same-store sales down 0.8%. Analysts polled by FactSet expected the company to report adjusted earnings of 23 cents a share on sales of $282 million. "With the continued rise of inflationary pressures, coupled with increasing interest rates, we have seen customer traffic soften during the second quarter, and we expect these trends to continue until these external pressures subside," the company said. "However, we remain committed to our strategic initiatives to support our long-term growth and $2 billion revenue goal." Shares of Container Store ended the regular trading day down 6.1%. , with Custom Spaces+ up 7.1%, contributing an increase of 230 basis points to comparable store sales^ which was offset by general merchandise categories, which were down 4.6%, negatively impacting comparable store sales^ by 310 basis points.

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