Container Store cuts Q3 revenue view to $214M from $220M-$225M

Consensus $225.4M. Container Store stated: “The Company is still finalizing its quarterly closing procedures, but expects its profitability for the quarter to be negatively impacted by the sales shortfall. The Company will discuss its full financial results and outlook for the fourth quarter fiscal 2023 on its third quarter fiscal 2023 earnings call, which is expected to occur in early February.” Satish Malhotra, CEO, commented, “The challenging business trends we experienced in the second quarter continued. General merchandise categories underperformed compared to our expectations and were relatively consistent with our second quarter performance. While our Custom Spaces business showed sequential topline improvement compared to our second quarter performance, the magnitude of improvement fell short of our expectations. We saw particular strength in our premium, wood-based Custom Spaces line, Preston(TM).”