The Container Store enjoyed a strong fiscal year third quarter as the home organization specialty retailer reported solid growth within its retail division as well as with its Elfa third-party business.
Consolidated net sales for the quarter ended December 26, 2020, were $275.5 million, up 20.5% over the same quarter in the prior fiscal year. The sales were the highest for any quarter in the company’s history.
The strong quarter comes at a time when The Container Store is seeing a change at the top. Longtime President and CEO Melissa Reiff, who now holds the title of chairwoman, will retire as of March 1. Satish Malhotra has assumed the duties of company president and CEO.
In the third quarter, The Container Store reported growth in several product categories including kitchen, closet, storage, home office and bath. In fact, company officials said they were “pleased” with its mini kitchen event held just prior to Thanksgiving.
Officials with the retailer also said they will be building off the successful partnership with The Home Edit and recently launched its co-branded product collection with design guru Marie Kondo. The line features more than 100 sustainably-sourced products that launched online on January 11 and in stores on January 15.
“While still very early, customer response has been terrific,” Reiff said of the Kondo line.
On the brick-and-mortar side of its business, the retailer said it is closing its Lexington Avenue store in New York City. The store’s lease expires at the end of February.
Reiff said the “flight to the suburbs” because of the COVID-19 pandemic was a factor in shutting the store. The Container Store operates a second New York City store on 6th Avenue in the Chelsea section.
The retailer is moving forward with plans to open a new store in Richmond, Va., at the end of its fiscal year with an additional store opening planned for 2021. The location of that store is not known.