initial public offerings (IPOs) trading on American exchanges

Friday, November 1, 2013

The Container Store (TCS) doubles on its first day of trading on the NYSE 1 November 2013

Coppell, Texas-based The Container Store Group, Inc., the leading U.S. specialty retailer of storage and organization products, will begin trading on the NYSE today under the ticker symbol “TCS.” To celebrate the milestone, President and COO Melissa Reiff rang the Opening Bell in honor of her late father Reuben Meyer, a former stock broker.

The Container Store Chairman and CEO Kip Tindell, President Melissa Reiff, CMO Sharon Tindell and CFO Jodi Taylor ring the opening bell at the

The company, known for its employee-first culture, only has 62 stores. It opened its first store in Dallas in 1978. It said it expects to grow its current U.S. footprint to at least 300 stores.

Its comparable store sales, a key industry performance metric, have risen for 13 straight quarters. The company said its employee training program, including more than 260 hours of formal training in full-time employees’ first year, will continue to differentiate it from rivals and help drive traffic.

Beyond its stores, the company said it has growth opportunities through online and call centers, which together have risen 84% over the past three fiscal years and account for 5.4% of total business.

Its total sales grew to $706.8 million last year from $568.8 million three years ago. Average transaction size has increased to $57 from $54 during the same period.

Still, while Container Store looks to have plenty of store growth ahead, it faces competition in a fragmented home-furnishings market from the likes of Bed, Bath & Beyond (BBBY) and Crate & Barrel on the specialty retail side and from the likes of Wal-Mart (WMT)  and Target (TGT)  on the lower end.

The company also has posted at least three straight years of losses despite narrowing those losses to $130,000 last year from $45.1 million three years ago. It also handles its merchandise distribution from one single distribution center in a suburb of Dallas, which it lists as a business risk. 

No comments:

Post a Comment