Why The Container Store Stock Jumped 11.5% in Morning Trading
Shares of home storage retailer The Container Store (NYSE: TCS) rose a quick 11.5% in early trading on Jan. 3, the first trading day of the new year. The likely reason was a news release put out before the market opened, outlining an acquisition in the closet space.
If you've ever been to a Container Store you know that the company's wholly owned Elfa closet organizing system is a huge part of its business. In the fiscal second quarter of 2021 (ended Oct. 2), the company's overall sales rose 11.2% year over year. However, that was driven by a 22.1% increase in "custom closets," which is basically Elfa, and just 3.1% in "other" product categories. Closets are obviously an important growth driver for the retailer.
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Source Fool.com
