Why The Container Store Stock Plunged 24% at the Open Today
Shares of The Container Store (NYSE: TCS), a retailer of closet and storage items, fell dramatically in the first few minutes of trading on Feb. 9, quickly losing 24% of their value. The big news was the company's fiscal third-quarter 2021 earnings release, which hit the newswires on Feb. 8. Clearly, Wall Street did not like the update.
Sales at The Container Store came in at $267.3 million in the fiscal third quarter of 2021. That was down 3% versus the same quarter of 2020, but up nearly 17% compared to 2019, before the coronavirus pandemic hit. So it would be hard to suggest that the retailer is struggling, given that it has grown notably during uncertain times. But there's a caveat, given that people's social distancing efforts and working from home likely led to a boost in demand. That benefit could be over, as sales in its custom closets business were flat in the quarter. Facilitating closet makeovers is one of the company's most important businesses.
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Source Fool.com
