The Container Store receives NYSE delisting notice; sales fall 21%

The Container Store ended its fiscal year on a downbeat note.

The organizing solutions and custom spaces retailer on Tuesday said it has been notified by the New York Stock Exchange that it is not in compliance with average closing price rules as the company’s common stock was under $1.00 for a consecutive 30-day trading period. (The notice does not result in the immediate delisting of the company’s common stock from the NYSE.)

In a statement, The Container Store said it has notified the NYSE that is intends to regain compliance within the allotted six-month period and would consider a reverse stock split. The company’s common stock will continue to be listed and trade on the NYSE during this period. 

Also on Tuesday, The Container Store reported that its fourth-quarter (ended March 30) net sales decreased 20.7% to $206 million. E-commerce sales fell 30.8%. 

Comparable store-sales were down 21.8%. with general merchandise categories down 26.7%

The company reported a consolidated net loss and net loss per share of  $61.4 million and $1.24 per diluted share, compared to net loss of $189.3 million and $3.85 per diluted share, respectively, in the year-ago quarter.

Despite the challenging quarter, The Container Store is still expanding. It plans to open four new stores in fiscal 2024, as well as relocate one store and close one store.

“Looking ahead, while we anticipate continued challenges within our general merchandise offerings, we continue to lean into Custom Spaces through enhancing our assortment, strengthening our in-home design service and building awareness through impactful marketing campaigns that highlight our complete offerings,” said CEO and president Satish Malhotra. “We plan to push forward on all of our market share driving initiatives to ensure we are poised to capitalize on the significant opportunities for the business and the brand when the backdrop normalizes."

As of March 30, 2024, the company operated 102 stores.