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The Container Store Group's (TCS) CEO Melissa Reiff on Q4 2017 Results - Earnings Call Transcript

Specific to Q4, our consolidated sales increased 5.3% and we had our best quarterly comp store sales performance of the year, a comp store sales increase of up 2.7%. This is a result of strong sales from our Custom Closets business as well as positive comp store sales contribution from our other product categories. Q4 is the most important quarter of the year for us as our Annual elfa Sale occurs during the quarter. We were very pleased with the results of this year’s elfa Sale campaign, and that is despite a sizable increase in our deferred sales, resulting from Custom Closets orders taken in Q4 but not yet delivered or installed. As a result, those sales cannot be recorded and are expected to record in Q1 of fiscal 2018. We experienced strong kitchen campaign sales in Q4 which I’ll discuss more in just a moment. But that did help offset some of those deferred sales in Custom Closets. We again delivered a strong quarter of web generated sales performance with sales up almost 21% when including our click and pickup sales and up 21.5% for direct-to-customer sales only. Elfa third-party sales were up 4.8% in U.S. dollars with the 9% positive impact from foreign currency translations. These improved sales are reflective of the positive work we have been doing on our sales revitalization initiatives, as well as our efficiency and optimization actions including marketing, merchandising and organizational changes. One such example is our kitchen sale campaign that I just mentioned that occurred during the month of March for the second consecutive year. This year, we changed the strategy of the event to 25% of selected products versus last year’s 15% of the entire kitchen department.

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