Container Store -15% AH, cuts outlook amid "retail funk"

|About: The Container Store Group, ... (TCS)|By:, SA News Editor

The Container Store (TCS) -15% AH after missing FQ1 earnings estimates and issuing downside guidance for FY 2015, as the specialty retailer says it is "experiencing a retail funk."

FQ1 net sales rose 9% Y/Y to $173.4M, but same-store sales slipped 0.8% and gross margin narrowed to 58.1% from 58.4%.

See FY 2015 EPS of $0.49-$0.54 vs. $0.57 analyst consensus estimate, and FY 2015 revenues of $820M-$830M vs. $831M consensus.

"We thought our sluggish sales were all because of weather and calendar shifts that began last November and continued into the spring, but now we've come to realize it's more than weather and calendar," CEO Kip Tindell says.