Coppell, Texas – The Container Store Group Inc. saw its net income drop about 2%, to $5.2 million from $5.3 million, during the third quarter of fiscal 2013. This occurred while net sales grew 7.3%, to $188.3 million from $175.4 million, and same-store sales increased 4.7%.
An 8.7% in selling, general and administrative expenses, primarily due to increases in expenses incurred in preparation for the company’s IPO, expenses associated with operating as a public company and a timing shift in direct mail expenses. Net interest expense also increased compared to the same quarter in the prior year.
“We are pleased with our operating results in the third quarter,” said Kip Tindell, chairman and CEO of The Container Store. “Our net sales increase of 7.3% was fueled by our retail business at The Container Store, where sales increased 10.8%. We saw strong performance across new and existing stores as comparable store sales increased 4.7%; our fourteenth consecutive quarter of comparable store sales increases. These results demonstrate the strength of our differentiated business model, brand awareness, unique employee-first culture and solid execution by the entire team at The Container Store.”