The Container Store Group, Inc. announces consolidated net sales up by 0.3% for 2Q FY2016

  • Consolidated Net Sales Up Slightly and Improved Net Income Associated with SG&A Savings Program
  • Continues to See Positive Impact from TCS Closets®, Launches Pilot of elfa® Sliding Doors

COPPELL, Texas, 2016-Nov-11 — /EPR Retail News/ — The Container Store Group, Inc. (NYSE:TCS) (the “Company”), today (11/09/2016) announced financial results for the second quarter of fiscal 2016 ended October 1, 2016. In light of the Company’s previously announced fiscal year end change, all references to prior year results are based on the recast second quarter of fiscal 2015 ended October 3, 2015.

  • Consolidated net sales were $205.1 million, up 0.3%. Net sales in The Container Store retail business were $189.1 million, up 0.9%. Elfa International AB third-party net sales were $16.0 million, down 6.0%.
  • Comparable store sales for the second quarter of fiscal 2016 were down 4.2%.
  • Consolidated net income per diluted share (EPS) was $0.07 compared with $0.07 in the second quarter ended October 3, 2015.
  • The Company opened two new stores in the second quarter of fiscal 2016, has opened two new stores in the third fiscal quarter-to-date and has plans to open two additional locations in the remainder of the third fiscal quarter. The Company had 82 stores at the end of the second quarter of fiscal 2016, as compared to 75 as of October 3, 2015.

Melissa Reiff, Chief Executive Officer, stated, “We are pleased with our earnings performance in the second fiscal quarter of 2016. And while there is still work to be done to drive consistent growth in top line performance, we experienced improving sales trends in September and now in early third fiscal quarter, as we have encountered more comparable cadence of merchandising campaigns and promotional activities. Our 2016 SG&A savings program is gaining traction as evidenced by the leveraging of expenses in a challenging sales environment. This commitment to strong cost discipline drove SG&A efficiencies and contributed to EPS of $0.07.”

Reiff continued, “We believe we are making progress on many fronts to evolve our customer shopping experience in order to improve sales and profitability. Our new customer financing program, while still in its infancy, is driving incremental sales, and our TCS Closets line drove 200 basis points of comparable store sales growth this quarter. We are also working on mid- and long-term goals, strategies and priorities while we simultaneously execute near-term initiatives such as the pilot of elfa® Sliding Doors in our two Manhattan stores.”

“We are cautiously optimistic about the second half of the fiscal year. However, after factoring in our first half results and our expectations for the remainder of the fiscal year, we are updating our annual sales outlook. We are pleased to reiterate our previously provided annual EPS outlook due in part to the continued positive impact of our SG&A Savings Program,” Reiff concluded.

Second Quarter 2016 Results

For the second quarter (thirteen weeks) ended October 1, 2016:

  • Consolidated net sales were $205.1 million, up 0.3% as compared to the second quarter ended October 3, 2015. Net sales in The Container Store retail business (“TCS”) were $189.1 million, up 0.9% as compared to the second quarter ended October 3, 2015, primarily due to new store sales, partially offset by a 4.2% decrease in comparable store sales. Elfa International AB (“Elfa”) third party net sales were $16.0 million, down 6.0% compared to the second quarter ended October 3, 2015, primarily due to lower sales in Russia and the Nordic markets during the quarter.
  • Consolidated gross margin was 57.7%, a decline of 20 basis points compared to the second quarter ended October 3, 2015. TCS gross margin declined 10 basis points to 57.3%, as an increased mix of lower margin products and services was partially offset by the impact of a stronger U.S. dollar. Elfa gross margin remained consistent at 38.2%. On a consolidated basis, gross margin decreased 20 basis points primarily due to the decline in TCS gross margin.
  • Consolidated selling, general and administrative expenses (“SG&A”) decreased by 0.6% to $95.5 million from $96.1 million in the second quarter ended October 3, 2015. SG&A as a percentage of net sales decreased 40 basis points, primarily due to decreased spending associated with the Company’s SG&A savings program and a positive impact from foreign currency exchange rates, partially offset by deleveraging of occupancy costs associated with negative comparable store sales growth.
  • Consolidated net interest expense remained consistent at $4.2 million.
  • The effective tax rate for the second quarter of fiscal 2016 was 41.6%, as compared to 41.1% in the second quarter ended October 3, 2015. The increase in the effective tax rate is primarily due to a change in mix between projected domestic and foreign earnings.
  • Net income was $3.5 million, or $0.07 per share, in the second quarter of fiscal 2016 compared to net income of $3.3 million, or $0.07 per share, in the second quarter ended October 3, 2015.
  • Consolidated Adjusted EBITDA was $22.3 million compared to $21.9 million in the second quarter ended October 3, 2015, (see GAAP/Non-GAAP reconciliation table).

For the year-to-date (twenty-six weeks) ended October 1, 2016:

  • Consolidated net sales were $382.5 million, up 2.2% as compared to the year-to-date ended October 3, 2015. Net sales at TCS were $350.3 million, up 2.8% as compared to the year-to-date ended October 3, 2015, primarily due to new store sales, partially offset by a 3.0% decrease in comparable store sales. Elfa third-party net sales were$32.2 million, down 3.9% compared to the year-to-date ended October 3, 2015, primarily due to lower sales in Russia.
  • Consolidated gross margin was 58.3%, an increase of 10 basis points compared to the year-to-date ended October 3, 2015. TCS gross margin declined 10 basis points to 57.9%, as an increased mix of lower margin products and services was partially offset by the impact of a stronger U.S. dollar. Elfa gross margin improved 150 basis points primarily due to lower direct materials costs and improved production efficiencies, partially offset by higher freight costs. On a consolidated basis, gross margin improved as the improvement in Elfa gross margin was partially offset by the decline in TCS gross margin.
  • Consolidated selling, general and administrative expenses (“SG&A”) decreased by 1.3% to $187.8 million from $190.4 million in the year-to-date ended October 3, 2015. SG&A as a percentage of net sales decreased 170 basis points. This was primarily due to the impact of the reversal of accrued deferred compensation of $3.9 million, or 100 basis points, which occurred in the first quarter of 2016. Additionally, the Company’s SG&A savings program contributed to decreased spending. The Company also experienced a positive impact from foreign currency exchange rates and lower healthcare costs during the first half of fiscal 2016. The positive impact of these items was partially offset by deleveraging of occupancy costs associated with negative comparable store sales growth during the first half of fiscal 2016.
  • Consolidated net interest expense decreased to $8.3 million from $8.4 million in the year-to-date ended October 3, 2015.
  • The effective tax rate was 50.3%, as compared to 29.6% in the year-to-date ended October 3, 2015. The increase in the effective tax rate was primarily due to a shift in mix between projected domestic and foreign earnings, combined with the impact of a pre-tax income position in the first half of fiscal 2016, as compared to a pre-tax loss position in the first half of fiscal 2015.
  • Net income was $1.5 million, or $0.03 per share, compared to net loss of $2.4 million, or ($0.05) per share, in the year-to-date ended October 3, 2015. Net income of $1.5 million in the first half of fiscal 2016 includes a benefit from the impact of amended and restated employment agreements entered into with key executives, net of costs incurred related to management transition and income taxes, of approximately $1.6 million, or $0.03 per share.
  • Consolidated Adjusted EBITDA was $34.3 million compared to $26.6 million in the year-to-date ended October 3, 2015, (see GAAP/Non-GAAP reconciliation table). The Adjusted EBITDA of $34.3 million in the first half of fiscal 2016 includes a benefit from the impact of amended and restated employment agreements entered into with key executives during the first quarter of 2016, net of costs incurred to execute the agreements, of $3.9 million.

Outlook

The Company is updating its fiscal 2016 sales outlook and now expects consolidated net sales to be $820 to $830 million, based on its planned store openings, and a comparable store sales range of -3.0% to -1.5%. Net income for fiscal 2016 is still expected to be $0.20 to $0.30 per diluted common share based on estimated diluted common shares outstanding of 49 million. This assumes a tax rate of approximately 39% for the full fiscal year.

Conference Call Information

A conference call to discuss second quarter fiscal 2016 financial results is scheduled for today, November 9, 2016, at 4:30 PM Eastern Time. Investors and analysts interested in participating in the call are invited to dial (877) 407-3982 (international callers please dial (201) 493-6780) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call will be available online at www.containerstore.com in the investor relations section of the website.

A taped replay of the conference call will be available within two hours of the conclusion of the call and can be accessed both online and by dialing (877) 870-5176 (international replay number is (858) 384-5517). The pin number to access the telephone replay is 13647884. The replay will be available through December 9, 2016 at 11:59 PM Eastern Time.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including expectations regarding driving consistent sales and profit growth, expectations regarding our goals, strategies, priorities and initiatives, including the 2016 SG&A savings program, new customer financing program and elfa® Sliding Doors initiative, expectations for new store openings and relocations, and statements regarding our anticipated financial performance.

These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: our inability to successfully implement our planned fiscal 2016 initiatives in the timeframe we expect or at all; our inability to open or relocate new stores in the timeframe and at the locations we anticipate; overall decline in the health of the economy, consumer spending, and the housing market; our inability to manage costs and risks relating to new store openings; our inability to source and market new products to meet consumer preferences; our failure to achieve or maintain profitability; our dependence on a single distribution center for all of our stores; effects of a security breach or cyber-attack of our website or information technology systems; our vulnerability to natural disasters and other unexpected events; our reliance upon independent third party transportation providers; our inability to protect our brand; our failure to successfully anticipate consumer preferences and demand; our inability to manage our growth; inability to locate available retail store sites on terms acceptable to us; our inability to maintain sufficient levels of cash flow to meet growth expectations; disruptions in the global financial markets leading to difficulty in borrowing sufficient amounts of capital to finance the carrying costs of inventory to pay for capital expenditures and operating costs; fluctuations in currency exchange rates; our inability to effectively manage our online sales; competition from other stores and internet based competition; our inability to obtain merchandise on a timely basis at competitive prices as a result of changes in vendor relationships; vendors may sell similar or identical products to our competitors; our reliance on key executive management, and the transition in our executive leadership; our inability to find, train and retain key personnel; labor relations difficulties; increases in health care costs and labor costs; our dependence on foreign imports for our merchandise; violations of the U.S. Foreign Corrupt Practices Act and similar worldwide anti bribery and anti-kickback laws; and our indebtedness may restrict our current and future operations.

These and other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC, on May 10, 2016, and our other reports filed with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

About The Container Store

The Container Store (NYSE: TCS) is the nation’s leading retailer of storage and organization products and the only retailer solely devoted to the storage and organization category of retailing. The Company originated the concept of storage and organization retailing when it opened its first store in 1978. Today, the retailer has 84 store locations nationwide that each average 25,000 square feet. The Container Store has over 11,000 products to help customers save space and, ultimately, save them time. As the pace of modern life accelerates and being organized is not a luxury anymore but a necessity, The Container Store is devoted to making customers more productive, relaxed and happier by selling customized, complete solutions. Since its inception, the retailer has nurtured an employee-first culture and couples its one-of-kind product collection with a high level of customer service delivered by its highly trained organization experts. The Company has been named to FORTUNE magazine’s 100 Best Companies To Work For® — 17 years in a row. Visit www.containerstore.com for more information about store locations, the product collection and services offered. To find out more about The Container Store’s unique culture, Foundation PrinciplesTM and devotion to Conscious Capitalism®, visit the retailer’s culture blog at www.whatwestandfor.com

Investors:
ICR, Inc.
Farah Soi/Anne Rakunas
203.682.8200
Farah.Soi@icrinc.com

Media:
The Container Store
Audrey Robertson
972.538.6623
AudreyR@containerstore.com

Source: The Container Store Group, Inc.

Bed Bath & Beyond Inc. announces financial results for 2Q FY2016 ended August 27, 2016

UNION, N.J., 2016-Sep-23 — /EPR Retail News/ — Bed Bath & Beyond Inc. (NASDAQ: BBBY) today (Sept. 21, 2016) reported financial results for the second quarter of fiscal 2016 ended August 27, 2016.

Second Quarter Results

For the second quarter of fiscal 2016, the Company reported net earnings of $1.11 per diluted share ($167.3 million) compared with $1.21 per diluted share ($201.7 million) for the second quarter of fiscal 2015.  Net sales for the second quarter of fiscal 2016 were approximately $2.988 billion, a decrease of approximately 0.2% from net sales of approximately $2.995 billion reported in the second quarter of fiscal 2015.  Comparable sales in the second quarter of fiscal 2016 decreased by approximately 1.2%, compared with an increase of approximately 0.7% in last year’s fiscal second quarter.  Comparable sales from customer-facing digital channels grew in excess of 20% while comparable sales from stores declined in the low single-digit percentage range during the second quarter of fiscal 2016.

Capital Allocation

The Company’s Board of Directors has declared a quarterly dividend of $.125 per share, to be paid on January 17, 2017 to shareholders of record as of the close of business on December 16, 2016.

During the second quarter of fiscal 2016, the Company repurchased approximately $121 million of its common stock, representing approximately 2.7 million shares, under its existing $2.5 billion share repurchase program.  As of August 27, 2016, the program had a remaining balance of approximately $2.0 billion, and is expected to be completed in the latter half of fiscal 2019 or in fiscal 2020.

Fiscal 2016 Outlook

Bed Bath & Beyond Inc.’s conference call with analysts and investors will be held today at 5:00 pm (ET). During this call, the Company plans to review its fiscal 2016 financial planning assumptions.

Based on these planning assumptions, which reflect actual results through the fiscal second quarter, the slight dilution anticipated from the Company’s purchase of One Kings Lane, Inc., and current business trends, the Company continues to model its fiscal 2016 net earnings per diluted share to be within the $4.50 to just over $5.00 range that it has earned over the past several years, during a heavy investment phase. This is the range of net earnings per diluted share that the Company described in its two previous earnings press releases.

The Company’s fiscal 2016 second quarter conference call may be accessed by dialing 1-888-771-4371, or if international, 847-585-4405, using conference ID number 43322661. The replay of the call can be accessed by dialing 1-888-843-7419, using conference ID number 43322661.  The call and replay can also be accessed via audio webcast on the investor relations section of our website at www.bedbathandbeyond.com.

About the Company

Bed Bath & Beyond Inc. and subsidiaries (the “Company”) is a retailer selling a wide assortment of domestics merchandise and home furnishings which operates under the names Bed Bath & Beyond, Christmas Tree Shops, Christmas Tree Shops andThat! or andThat!, Harmon or Harmon Face Values, buybuy BABY and World Market, Cost Plus World Market or Cost Plus. Customers can purchase products from the Company either in-store, online, with a mobile device or through a contact center. The Company generally has the ability to have customer purchases picked up in-store or shipped direct to the customer from the Company’s distribution facilities, stores or vendors.  In addition, the Company operates Of a Kind, an e-commerce website that features specially commissioned, limited edition items from emerging fashion and home designers, and One Kings Lane, an authority in home décor and design offering a unique collection of select home goods, designer and vintage items.  The Company also operates Linen Holdings, a provider of a variety of textile products, amenities and other goods to institutional customers in the hospitality, cruise line, healthcare and other industries.  Additionally, the Company is a partner in a joint venture which operates retail stores in Mexico under the name Bed Bath & Beyond.

The Company operates websites at bedbathandbeyond.com, bedbathandbeyond.ca, worldmarket.com, buybuybaby.com, buybuybaby.ca, christmastreeshops.com, harmondiscount.com, ofakind.com, onekingslane.com, harborlinen.com and t-ygroup.com.  As of August 27, 2016, the Company had a total of 1,539 stores, including 1,024 Bed Bath & Beyond stores in all 50 states, the District of Columbia, Puerto Rico and Canada, 278 stores under the names of World Market, Cost Plus World Market or Cost Plus, 107 buybuy BABY stores, 79 stores under the names Christmas Tree Shops, Christmas Tree Shops andThat! or andThat!, and 51 stores under the names Harmon or Harmon Face Values.  During the fiscal second quarter, the Company opened three Bed Bath & Beyond stores, one Cost Plus World Market store and two buybuy Baby stores.  In addition, the Company is a partner in a joint venture which operates eight stores in Mexico under the name Bed Bath & Beyond.

Forward-Looking Statements

This press release may contain forward-looking statements.  Many of these forward-looking statements can be identified by use of words such as may, will, expect, anticipate, approximate, estimate, assume, continue, model, project, plan, and similar words and phrases.  The Company’s actual results and future financial condition may differ materially from those expressed in any such forward-looking statements as a result of many factors. Such factors include, without limitation: general economic conditions including the housing market, a challenging overall macroeconomic environment and related changes in the retailing environment; consumer preferences, spending habits and adoption of new technologies; demographics and other macroeconomic factors that may impact the level of spending for the types of merchandise sold by the Company; civil disturbances and terrorist acts; unusual weather patterns and natural disasters; competition from existing and potential competitors; competition from other channels of distribution; pricing pressures; liquidity; the ability to attract and retain qualified employees in all areas of the organization; the cost of labor, merchandise and other costs and expenses; potential supply chain disruption due to political instability, labor disturbances, product recalls, financial or operational instability of suppliers or carriers, and other items; the ability to find suitable locations at acceptable occupancy costs and other terms to support the Company’s plans for new stores; the ability to assess and implement technologies in support of the Company’s development of its omnichannel capabilities; the ability to establish and profitably maintain the appropriate mix of digital and physical presence in the markets it serves; uncertainty in financial markets; disruptions to the Company’s information technology systems including but not limited to security breaches of systems protecting consumer and employee information; reputational risk arising from challenges to the Company’s or a third party supplier’s compliance with various laws, regulations or standards, including those related to labor, health, safety, privacy or the environment; reputational risk arising from third-party merchandise or service vendor performance in direct home delivery or assembly of product for customers; changes to statutory, regulatory and legal requirements; new, or developments in existing, litigation, claims or assessments; changes to, or new, tax laws or interpretation of existing tax laws; changes to, or new, accounting standards; foreign currency exchange rate fluctuations; and the integration of acquired businesses.  The Company does not undertake any obligation to update its forward-looking statements.

INVESTOR CONTACT:
Janet M. Barth
(908) 613-5820

SOURCE: Bed Bath & Beyond Inc.

DAVIDsTEA Inc. to release 2Q FY2016 financial results on September 7, 2016

MONTREAL, 2016-Aug-26 — /EPR Retail News/ — DAVIDsTEA Inc. (Nasdaq:DTEA) today announced that its financial results for the second quarter fiscal 2016 will be released after market close on Wednesday, September 7, 2016.  The Company will host a conference call at 4:30 p.m. Eastern Time that day to discuss the financial results.

The Company has also announced its participation at the 23rd Annual Goldman Sachs Global Retailing Conference held at the Plaza Hotel in New York City. Sylvain Toutant, President and Chief Executive Officer, and Luis Borgen, Chief Financial Officer, are currently scheduled to present on Thursday, September 8, 2016, at 2:25 p.m. Eastern Time.

Both the earnings conference call and the conference presentation will be broadcast on the Company’s website at http://www.davidstea.com, in the “investor relations” section. Online archives of the webcasts will be available within two hours of the conclusion of the events and will remain available for one year.

About DAVIDsTEA Inc.
DAVIDsTEA is a fast-growing retailer of specialty tea, offering a differentiated selection of proprietary loose-leaf teas, pre-packaged teas, tea sachets and tea-related gifts, accessories and food and beverages, primarily through 198 company-operated DAVIDsTEA stores throughout Canada and the United States as of April 30, 2016, and its website, davidstea.com. The Company is headquartered in Montréal, Canada.

Investor Contact:

ICR, Inc.
Farah Soi
Rachel Schacter
203-682-8200
investors@davidstea.com

Source: DAVIDsTEA Inc./ GLOBE NEWSWIRE

Sears Holdings Corporation to release financial results for its 2Q FY2016 on August 25, 2016

HOFFMAN ESTATES, Ill., 2016-Aug-15 — /EPR Retail News/ — Sears Holdings Corporation (NASDAQ: SHLD) today announced the company currently plans to release financial results for its fiscal 2016 second quarter on or about Thursday, August 25, 2016.

About Sears Holdings Corporation
Sears Holdings Corporation (NASDAQ: SHLD) is a leading integrated retailer focused on seamlessly connecting the digital and physical shopping experiences to serve our members – wherever, whenever and however they want to shop. Sears Holdings is home to Shop Your Way®, a social shopping platform offering members rewards for shopping at Sears and Kmart as well as with other retail partners across categories important to them. The company operates through its subsidiaries, including Sears, Roebuck and Co. and Kmart Corporation, with full-line and specialty retail stores across the United States. For more information, visit www.searsholdings.com.

NEWS MEDIA CONTACT:

Sears Holdings Public Relations
(847) 286-8371

SOURCE Sears Holdings Corporation

SpartanNash Company to announce its 2Q FY2016 financial results on August 17, 2016

Byron Center, MI, 2016-Aug-09 — /EPR Retail News/ — SpartanNash Company (the “Company”) (Nasdaq: SPTN) will announce its second quarter fiscal year 2016 financial results after the stock market close on Wednesday, August 17, 2016.

The Company will host a conference call to discuss these results with additional comments and details on Thursday, August 18, 2016 at 9:00 a.m. ET. The call will be broadcast live over the Internet hosted at SpartanNash’s website at www.spartannash.com/webcasts under the “Investor Relations” section and will remain available for replay on the Company’s website for approximately ten days.

About SpartanNash
SpartanNash (SPTN) is a Fortune 400 company and the leading distributor serving U.S. military commissaries and exchanges in the world, in terms of revenue. The Company’s core businesses include distributing grocery products to military commissaries and exchanges and independent and Company-owned retail stores located in 47 states and the District of Columbia, Europe, Cuba, Puerto Rico, Bahrain and Egypt. SpartanNash currently operates 160 supermarkets, primarily under the banners of Family Fare Supermarkets,Family Fresh Markets, D&W Fresh Markets, and Sun Mart.

Investor Contact:
Chris Meyers
616-878-8023
Executive Vice President & CFO

Media Contact:
Meredith Gremel
616-878-2830
Vice President Corporate Affairs and Communications

Source: SpartanNash