Container Store reports Q1 EPS (21c), consensus (19c)

Reports Q1 revenue $207.1M, consensus $203.8M. Comparable store sales decreased 19.9%, with general merchandise categories down 20.5%, contributing a decrease of 1360 basis points to comparable store sales. Satish Malhotra, CEO, commented, “Our first quarter topline performance was in line with our expectations and reflects the impact of the ongoing challenging macro environment. During the quarter, we continued our focus on bringing merchandise newness and innovation to our customers, and delivering an engaging in-store experience demonstrated by a net promoter score of 81. We also tested a number of different promotional events to entice our customers. While these tests pressured margins in the quarter, they unlocked key learnings that we are incorporating into our go-forward promotional plans. We also successfully executed against our cost-cutting action plan that did not jeopardize our focus on customer experience. We are updating our outlook to reflect current trends in the business. Even as we continue to navigate the challenges of the current environment, we are relentlessly focused on executing against the initiatives that will further solidify our category leadership position and drive our growth when market conditions normalize.”