Cover
Cover - USD ($) | 12 Months Ended | ||
Mar. 30, 2024 | May 21, 2024 | Sep. 29, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 30, 2024 | ||
Current Fiscal Year End Date | --03-30 | ||
Document Transition Report | false | ||
Entity File Number | 001-36161 | ||
Entity Registrant Name | CONTAINER STORE GROUP, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-0565401 | ||
Entity Address, Address Line One | 500 Freeport Parkway | ||
Entity Address, City or Town | Coppell | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75019 | ||
City Area Code | 972 | ||
Local Phone Number | 538-6000 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | TCS | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 77,507,602 | ||
Common Stock Outstanding | 50,265,658 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement for its 2024 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0001411688 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Mar. 30, 2024 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Dallas, Texas |
Auditor Firm ID | 42 |
Consolidated balance sheets
Consolidated balance sheets - USD ($) $ in Thousands | Mar. 30, 2024 | Apr. 01, 2023 |
Current assets: | ||
Cash | $ 21,000 | $ 6,958 |
Accounts receivable, net | 22,010 | 25,870 |
Inventory | 158,434 | 170,637 |
Prepaid expenses | 12,940 | 14,989 |
Income taxes receivable | 5,118 | 858 |
Other current assets | 11,046 | 10,914 |
Total current assets | 230,548 | 230,226 |
Noncurrent assets: | ||
Property and equipment, net | 155,402 | 158,702 |
Noncurrent operating lease right-of-use assets | 400,188 | 347,959 |
Goodwill | 0 | 23,447 |
Trade names | 146,449 | 221,278 |
Deferred financing costs, net | 97 | 150 |
Noncurrent deferred tax assets, net | 393 | 568 |
Other assets | 3,288 | 2,844 |
Total noncurrent assets | 705,817 | 754,948 |
Total assets | 936,365 | 985,174 |
Current liabilities: | ||
Accounts payable | 59,873 | 52,637 |
Accrued liabilities | 70,076 | 74,673 |
Current borrowings on revolving lines of credit | 0 | 2,423 |
Current portion of long-term debt | 2,166 | 2,063 |
Current operating lease liabilities | 60,692 | 57,201 |
Income taxes payable | 280 | 1,318 |
Total current liabilities | 193,087 | 190,315 |
Noncurrent liabilities: | ||
Long-term debt | 174,611 | 163,385 |
Noncurrent operating lease liabilities | 378,524 | 314,100 |
Noncurrent deferred tax liabilities, net | 24,185 | 49,338 |
Other long-term liabilities | 6,267 | 5,851 |
Total noncurrent liabilities | 583,587 | 532,674 |
Total liabilities | 776,674 | 722,989 |
Commitments and contingencies (Note 12) | ||
Shareholders’ equity: | ||
Common stock, $0.01 par value, 250,000,000 shares authorized; 49,607,811 shares issued at March 30, 2024; 49,181,562 shares issued at April 1, 2023 | 496 | 492 |
Additional paid-in capital | 873,927 | 872,204 |
Accumulated other comprehensive loss | (33,443) | (32,509) |
Retained deficit | (681,289) | (578,002) |
Total shareholders’ equity | 159,691 | 262,185 |
Total liabilities and shareholders’ equity | $ 936,365 | $ 985,174 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parentheticals) - $ / shares | Mar. 30, 2024 | Apr. 01, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 49,607,811 | 49,181,562 |
Consolidated statements of oper
Consolidated statements of operations - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Apr. 02, 2022 | |
Income Statement [Abstract] | |||
Net sales | $ 847,779 | $ 1,047,258 | $ 1,094,119 |
Cost of sales (excluding depreciation and amortization) | 359,014 | 446,295 | 457,882 |
Gross profit | 488,765 | 600,963 | 636,237 |
Selling, general, and administrative expenses (excluding depreciation and amortization) | 439,485 | 486,431 | 471,586 |
Impairment charges | 97,279 | 197,712 | 0 |
Stock-based compensation | 1,870 | 3,382 | 4,263 |
Pre-opening costs | 2,861 | 2,006 | 694 |
Depreciation and amortization | 44,333 | 38,905 | 34,289 |
Other expenses | 7,423 | 0 | 0 |
Loss on disposal of assets | 248 | 122 | (49) |
(Loss) income from operations | (104,734) | (127,595) | 125,454 |
Interest expense, net | 20,672 | 16,171 | 12,760 |
(Loss) income before taxes | (125,406) | (143,766) | 112,694 |
(Benefit) provision for income taxes | (22,119) | 15,090 | 30,976 |
Net (loss) income | $ (103,287) | $ (158,856) | $ 81,718 |
Net (loss) income per common share - basic (in dollars per share) | $ (2.09) | $ (3.21) | $ 1.65 |
Net (loss) income per common share - diluted (in dollars per share) | $ (2.09) | $ (3.21) | $ 1.62 |
Weighted-average common shares - basic (in shares) | 49,476,871 | 49,539,875 | 49,447,612 |
Weighted-average common shares - diluted (in shares) | 49,476,871 | 49,539,875 | 50,294,118 |
Consolidated statements of comp
Consolidated statements of comprehensive (loss) income - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Apr. 02, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (103,287) | $ (158,856) | $ 81,718 |
Unrealized (loss) on financial instruments, net of tax provision (benefit) of $0, ($26), and ($1,093) | 0 | (51) | (3,123) |
Pension liability adjustment, net of tax (benefit) provision of ($7), $168, and $145 | (26) | 792 | 506 |
Foreign currency translation adjustment | (908) | (5,806) | (5,824) |
Comprehensive (loss) income | $ (104,221) | $ (163,921) | $ 73,277 |
Consolidated statements of co_2
Consolidated statements of comprehensive income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Apr. 02, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized loss on financial instruments, tax provision (benefit) | $ 0 | $ (26) | $ (1,093) |
Pension liability adjustment, tax (benefit) provision | $ (7) | $ 168 | $ 145 |
Consolidated statements of shar
Consolidated statements of shareholders' equity - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained deficit |
Balance at the beginning of period (in shares) at Apr. 03, 2021 | 48,838,261 | ||||
Balance at the beginning of period at Apr. 03, 2021 | $ 353,669 | $ 488 | $ 873,048 | $ (19,003) | $ (500,864) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 81,718 | 81,718 | |||
Stock-based compensation | 4,263 | 4,263 | |||
Vesting of restricted stock awards (in shares) | 671,409 | ||||
Vesting of restricted stock awards | 0 | $ 7 | (7) | ||
Taxes related to net share settlement of restricted stock awards | $ (3,678) | (3,678) | |||
Stock options exercised (in shares) | 125,777 | 125,777 | |||
Stock options exercised | $ 565 | $ 1 | 564 | ||
Foreign currency translation adjustment | (5,824) | (5,824) | |||
Unrealized loss on financial instruments, net of tax benefit | (3,123) | (3,123) | |||
Pension liability adjustment, net of tax (benefit) provision | 506 | 506 | |||
Balance at the end of period (in shares) at Apr. 02, 2022 | 49,635,447 | ||||
Balance at the end of period at Apr. 02, 2022 | 428,096 | $ 496 | 874,190 | (27,444) | (419,146) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (158,856) | (158,856) | |||
Stock-based compensation | 3,382 | 3,382 | |||
Vesting of restricted stock awards (in shares) | 412,488 | ||||
Vesting of restricted stock awards | 0 | $ 4 | (4) | ||
Taxes related to net share settlement of restricted stock awards | $ (712) | (712) | |||
Stock options exercised (in shares) | 73,594 | 73,594 | |||
Stock options exercised | $ 340 | $ 1 | 339 | ||
Repurchases of common stock (in shares) | (939,967) | ||||
Repurchases of common stock | (5,000) | $ (9) | (4,991) | ||
Foreign currency translation adjustment | (5,806) | (5,806) | |||
Unrealized loss on financial instruments, net of tax benefit | (51) | (51) | |||
Pension liability adjustment, net of tax (benefit) provision | 792 | 792 | |||
Balance at the end of period (in shares) at Apr. 01, 2023 | 49,181,562 | ||||
Balance at the end of period at Apr. 01, 2023 | 262,185 | $ 492 | 872,204 | (32,509) | (578,002) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (103,287) | (103,287) | |||
Stock-based compensation | 1,871 | 1,871 | |||
Vesting of restricted stock awards (in shares) | 426,249 | ||||
Vesting of restricted stock awards | 0 | $ 4 | (4) | ||
Taxes related to net share settlement of restricted stock awards | $ (144) | (144) | |||
Stock options exercised (in shares) | 0 | ||||
Foreign currency translation adjustment | $ (908) | (908) | |||
Unrealized loss on financial instruments, net of tax benefit | 0 | ||||
Pension liability adjustment, net of tax (benefit) provision | (26) | (26) | |||
Balance at the end of period (in shares) at Mar. 30, 2024 | 49,607,811 | ||||
Balance at the end of period at Mar. 30, 2024 | $ 159,691 | $ 496 | $ 873,927 | $ (33,443) | $ (681,289) |
Consolidated statements of sh_2
Consolidated statements of shareholders' equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Apr. 02, 2022 | |
Statement of Stockholders' Equity [Abstract] | |||
Unrealized loss on financial instruments, tax benefit | $ 0 | $ 26 | $ 1,093 |
Pension liability adjustment, tax benefit (provision) | $ 7 | $ (168) | $ (145) |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Apr. 02, 2022 | |
Operating activities | |||
Net (loss) income | $ (103,287) | $ (158,856) | $ 81,718 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 44,333 | 38,905 | 34,289 |
Stock-based compensation | 1,870 | 3,382 | 4,263 |
Impairment charges | 97,279 | 197,712 | 0 |
Loss (gain) on disposal of assets | 248 | 122 | (49) |
Deferred tax (benefit) expense | (24,751) | (351) | 3,621 |
Non-cash interest | 1,884 | 1,884 | 1,883 |
Other | (339) | 1,059 | (1,321) |
Changes in operating assets and liabilities (exclusive of effects of acquisition): | |||
Accounts receivable | 3,565 | 1,836 | (1,631) |
Inventory | 12,145 | 20,450 | (63,533) |
Prepaid expenses and other assets | 564 | (4,584) | (1,474) |
Accounts payable and accrued liabilities | 3,396 | (37,684) | 9,814 |
Net change in lease assets and liabilities | 15,714 | 1,013 | (6,232) |
Income taxes | (5,177) | (5,213) | (1,811) |
Other noncurrent liabilities | (655) | (370) | (2,547) |
Net cash provided by operating activities | 46,789 | 59,305 | 56,990 |
Investing activities | |||
Additions to property and equipment | (39,894) | (64,223) | (33,389) |
C Studio acquisition, net of cash acquired | 0 | 0 | (19,445) |
Investments in non-qualified plan trust | (252) | (1,147) | (362) |
Proceeds from non-qualified plan trust redemptions | 719 | 916 | 2,708 |
Proceeds from sale of property and equipment | 206 | 43 | 66 |
Net cash used in investing activities | (39,221) | (64,411) | (50,422) |
Financing activities | |||
Borrowings on revolving lines of credit | 65,568 | 80,292 | 75,167 |
Payments on revolving lines of credit | (67,935) | (79,497) | (73,269) |
Borrowings on long-term debt | 31,000 | 40,000 | 38,000 |
Payments on long-term debt | (22,089) | (37,092) | (45,167) |
Repurchases of common stock | 0 | (5,000) | 0 |
Payment of taxes with shares withheld upon restricted stock vesting | (144) | (712) | (4,677) |
Proceeds from the exercise of stock options | 0 | 340 | 565 |
Net cash provided by (used in) financing activities | 6,400 | (1,669) | (9,381) |
Effect of exchange rate changes on cash | 74 | (519) | (622) |
Net increase (decrease) in cash | 14,042 | (7,294) | (3,435) |
Cash at beginning of fiscal period | 6,958 | 14,252 | 17,687 |
Cash at end of fiscal period | 21,000 | 6,958 | 14,252 |
Supplemental information: | |||
Cash paid for interest | 18,781 | 13,688 | 10,745 |
Cash paid for taxes | 7,958 | 21,275 | 30,163 |
Purchases of property and equipment (included in accounts payable) | 3,350 | 3,653 | 9,469 |
Cash paid for amounts included in the measurement of operating lease liabilities | 95,809 | 90,468 | 94,869 |
Additions to right-of-use assets in exchange for operating lease liabilities | $ 116,607 | $ 52,902 | $ 85,715 |
Nature of business and summary
Nature of business and summary of significant accounting policies | 12 Months Ended |
Mar. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of business and summary of significant accounting policies | Nature of business and summary of significant accounting policies Description of business The Container Store, Inc. was founded in 1978 in Dallas, Texas, as a retailer with a mission to provide customers with storage and organizing solutions to accomplish their projects through an assortment of innovative products and unparalleled customer service. In 2007, The Container Store, Inc. was sold to The Container Store Group, Inc. (the “Company”), a holding company, of which a majority stake was purchased by Leonard Green and Partners, L.P. (“LGP”), with the remainder held by certain employees of The Container Store, Inc. On November 6, 2013, the Company completed the initial public offering of its common stock (the “IPO”) at which time LGP held a controlling interest in the Company as the majority shareholder. In fiscal 2020, LGP sold some of the common stock of the Company, reducing their ownership to less than 50% of the Company’s outstanding common stock. Although LGP is no longer the majority shareholder, LGP continues to have significant influence over the Company. The Container Store, Inc. consists of our retail stores, website and call center (which includes business sales), as well as our in-home services business. As of March 30, 2024, The Container Store, Inc. operated 102 stores with an average size of approximately 24,000 square feet (18,000 selling square feet) in 34 states and the District of Columbia. The Container Store, Inc. also offers all of its products directly to its customers through its website, responsive mobile site and app, and call center. The Container Store, Inc.’s wholly owned Swedish subsidiary, Elfa International AB (“Elfa”), designs and manufactures component-based shelving and drawer systems and made-to-measure sliding doors that are customizable for any area of the home. elfa® branded products are sold exclusively in the United States in The Container Store® retail stores, website, and call center and Elfa sells to various retailers and distributors primarily in the Nordic region and throughout Europe on a wholesale basis. C Studio Manufacturing, Inc. (“C Studio”), formerly known as “Closet Parent Company, Inc.”, or “Closet Works”, assumed its new name effective January 2023. We own and operate the C Studio manufacturing facility in Elmhurst, Illinois, which designs and manufactures the Company’s premium wood-based custom space product offering, and is included in the TCS reportable segment. Basis of presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). Basis of consolidation The consolidated financial statements include our accounts and those of the Company’s wholly owned subsidiaries. The Company eliminates all significant intercompany balances and transactions, including intercompany profits, in consolidation. Fiscal year The Company follows a 4-4-5 fiscal calendar, whereby each fiscal quarter consists of thirteen weeks grouped into two four-week “months” and one five-week “month”, and its fiscal year ends on the Saturday closest to March 31 st . Elfa’s fiscal year ends on the last day of the calendar month of March. All references to “fiscal 2024” herein represent the results of the 52-week fiscal year ending March 29, Management estimates The preparation of the Company’s consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results could differ from those estimates. Significant accounting judgments and estimates include fair value estimates for operating lease assets and liabilities, indefinite-lived intangible assets, obsolescence and shrink reserve, assessments of long-lived asset impairments, gift card breakage, and assessment of valuation allowances on deferred tax assets. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. Based on the Company’s current financial projections, management believes the Company will maintain compliance with its financial covenants and the Company’s existing cash, projected operating cash flows and available borrowing capacity under its Revolving Credit Facility are adequate to meet its operating needs, liabilities and commitments over the next twelve months from the issuance of the accompanying consolidated financial statements. However, forecasts and projections are subject to risks and uncertainties about our operations, industry, financial condition, performance, operating results and liquidity. If future actual results differ from current financial projections, we could fail to comply with these financial covenants in future periods. Compliance with the financial covenants in the Company’s Senior Secured Term Loan Facility (as defined in Note 4, Long-term debt and revolving lines of credit) is measured quarterly and failure to meet the covenant requirements would constitute an event of default. As of March 30, 2024, the Company was in compliance with the financial covenants in the Senior Secured Term Loan Facility. Revenue recognition Revenue from sales related to retail operations is recognized when the merchandise is delivered to the customer at the point of sale. Revenue from sales that are shipped or delivered directly to customers is recognized upon estimated delivery to the customer and includes applicable shipping or delivery revenue. Revenue from sales that are installed is recognized upon completion of the installation service to the customer and includes applicable installation revenue. Revenue from sales of other services is recognized upon the completion of the service. Revenue from sales related to manufacturing operations is recorded upon shipment. Sales are recorded net of sales taxes collected from customers. A sales return allowance is recorded for estimated returns of merchandise subsequent to the balance sheet date that relate to sales prior to the balance sheet date. The returns allowance is based on historical return patterns and reduces sales and cost of sales, accordingly. Merchandise exchanges of similar product and price are not considered merchandise returns and, therefore, are excluded when calculating the sales returns allowance. We have not made any material changes to our assumptions used to recognize revenue during the periods presented. Contract Balances Contract balances as a result of transactions with customers primarily consist of trade receivables included in Accounts receivable, net, unearned revenue included in Accrued liabilities, and gift cards and store credits outstanding included in Accrued liabilities in the Company's consolidated balance sheets. See Note 3 for disclosure on the Company's trade receivables, unearned revenue, and gift cards and store credits outstanding with customers as of March 30, 2024 and April 1, 2023. Gift cards and merchandise credits Gift cards are sold to customers in retail stores, through the call center and website, and through certain third parties. We issue merchandise credits in our stores and through our call center. Revenue from sales of gift cards and issuances of merchandise credits is recognized when the gift card is redeemed by the customer, or the likelihood of the gift card being redeemed by the customer is remote (gift card breakage). The gift card breakage rate is determined based upon historical redemption patterns. An estimate of the rate of gift card breakage is applied over the period of estimated performance (48 months as of the end of fiscal 2023, fiscal 2022, and fiscal 2021) and the breakage amounts are included in net sales in the consolidated statement of operations. The Company recorded $1,195, $1,548, and $1,403 of gift card breakage in fiscal years 2023, 2022, and 2021, respectively. Cost of sales Cost of sales related to retail operations includes the purchase cost of inventory sold (net of vendor rebates), in-bound freight, as well as inventory loss reserves. Costs incurred to ship or deliver merchandise to customers, as well as direct installation and organization services costs, are also included in cost of sales. Cost of sales from manufacturing operations includes costs associated with production, including materials, wages, other variable production costs, and other applicable manufacturing overhead. Leases We recognize a lease liability upon lease commencement, measured at the present value of the fixed future minimum lease payments over the lease term. We have elected the practical expedient to not separate lease and non-lease components. Therefore, lease payments included in the measurement of the lease liability include all fixed payments in the lease arrangement. We record a right-of-use asset for an amount equal to the lease liability, increased for any prepaid lease costs and initial direct costs and reduced by any lease incentives. We remeasure the lease liability and right-of-use asset when a change to our future minimum lease payments occurs. Lease expense on operating leases is recorded on a straight-line basis over the term of the lease and is recorded in selling, general and administrative expenses (“SG&A”). Advertising All advertising costs of the Company are expensed when incurred, or upon the release of the initial advertisement, except for production costs related to direct mailings to customers, which are initially capitalized. Production costs related to direct mailings consist primarily of printing and postage and are expensed upon initial mailing to the customer. Advertising costs are recorded in SG&A. Pre-opening advertising costs are recorded in pre-opening costs. Total advertising expense incurred for fiscal years 2023, 2022, 2021, was $27,647, $35,786, and $36,784, respectively. Pre-opening costs Non-capital expenditures associated with opening new stores and distribution centers and relocating stores, including marketing expenses, travel and relocation costs are expensed as incurred and are included in pre-opening costs in the consolidated statement of operations. Income taxes We account for income taxes utilizing ASC 740, Income Taxes . ASC 740 requires an asset and liability approach, which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. We recognize interest and penalties related to unrecognized tax benefits in income tax expense. There were no uncertain tax positions requiring an accrual as of March 30, 2024 and April 1, 2023. Valuation allowances are established against deferred tax assets when it is more-likely-than-not that the realization of those deferred tax assets will not occur. Valuation allowances are released as positive evidence of future taxable income sufficient to realize the underlying deferred tax assets becomes available. Deferred tax assets and liabilities are measured using the enacted tax rates in effect in the years when those temporary differences are expected to reverse. The effect on deferred taxes from a change in the tax rate is recognized through continuing operations in the period that includes the enactment of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. We operate in certain jurisdictions outside the United States. ASC 740-30 provides that the undistributed earnings of a foreign subsidiary be accounted for as a temporary difference under the presumption that all undistributed earnings will be distributed to the parent company as a dividend. Sufficient evidence of the intent to permanently reinvest the earnings in the jurisdiction where earned precludes a company from recording the temporary difference. For purposes of ASC 740-30, the Company does not consider the earnings subject to the transition tax and global intangible low-taxed income (“GILTI”) under the Tax Cuts and Jobs Act (the “Tax Act”) permanently reinvested. All other earnings are considered permanently reinvested. The Company has elected an accounting policy to recognize GILTI as a period cost when incurred. Judgment is required in determining the provision for income and other taxes and related accruals, and deferred tax assets and liabilities. In the ordinary course of business, there are transactions and calculations where the ultimate tax outcome is uncertain. Additionally, the Company's various tax returns are subject to audit by various tax authorities. Although the Company believes that its estimates are reasonable, actual results could differ from these estimates. Stock-based compensation The Company accounts for stock-based compensation in accordance with ASC 718, Compensation-Stock Compensation , which requires the fair value of stock-based payments to be recognized in the consolidated financial statements as compensation expense over the requisite service period. For time-based awards, compensation expense is recognized on a straight-line basis, net of estimated forfeitures, over the requisite service period for awards that actually vest. For performance-based awards, compensation expense is estimated based on achievement of the performance condition and is recognized using the accelerated attribution method over the requisite service period for awards that actually vest. Stock-based compensation expense is recorded in the stock-based compensation line in the consolidated statements of operations. ASC 718 also provides guidance for determining whether certain financial instruments awarded in share-based payment transactions are liabilities. The guidance requires that instruments that include conditions other than service, performance or market conditions that affect their fair value, exercisability or vesting be classified as a liability and be remeasured at fair value at each fiscal period. Restricted Stock Awards The fair value of each restricted stock award is determined based on the closing price of the Company’s common stock as reported on The New York Stock Exchange on the grant date. Stock Options The Board determines the exercise price of stock options based on the closing price of the Company’s common stock as reported on The New York Stock Exchange on the grant date. The Company estimates the fair value of each stock option grant on the date of grant based upon the Black-Scholes option-pricing model. This model requires various significant judgmental assumptions in order to derive a final fair value determination for each type of award including: • Expected Term—The expected term of the options represents the period of time between the grant date of the options and the date the options are either exercised or canceled, including an estimate of options still outstanding. For future grants, we would expect to utilize TCS historical data to calculate the expected term. • Expected Volatility—The expected volatility incorporates historical and implied volatility of comparable public companies for a period approximating the expected term. For future grants, we would expect to utilize the TCS stock price volatility. • Expected Dividend Yield—The expected dividend yield is based on the Company’s expectation of not paying dividends on its common stock for the foreseeable future. • Risk-Free Interest Rate—The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant and with a maturity that approximates the expected term. Accounts receivable Accounts receivable consist primarily of trade receivables, receivables from The Container Store, Inc.’s credit card processors for sales transactions, and tenant improvement allowances from The Container Store, Inc.’s landlords in connection with new leases. An allowance for doubtful accounts is established on trade receivables, if necessary, for estimated losses resulting from the inability of customers to make required payments. Factors such as payment terms, historical loss experience, and economic conditions are generally considered in determining the allowance for doubtful accounts. Accounts receivable are presented net of allowances for doubtful accounts of $112 and $820 at March 30, 2024 and April 1, 2023, respectively. Inventories Inventories at retail stores and distribution centers are comprised of finished goods and are valued at the lower of cost or estimated net realizable value, with cost determined on a weighted-average cost method including associated in-bound freight costs. Manufacturing inventories are comprised of raw materials, work in process, and finished goods and are valued on a first-in, first out basis using full absorption accounting which includes material, labor, other variable costs, and other applicable manufacturing overhead. To determine if the value of inventory is recoverable at cost, we consider current and anticipated demand, customer preference and the merchandise age. The significant estimates used in inventory valuation are obsolescence (including excess and slow-moving inventory) and estimates of inventory shrinkage. We adjust our inventory for obsolescence based on historical trends, aging reports, specific identification and our estimates of future retail sales prices. Reserves for shrinkage are estimated and recorded throughout the period as a percentage of cost of sales based on historical shrinkage results and current inventory levels. Actual shrinkage is recorded throughout the year based upon periodic cycle counts. Actual inventory shrinkage can vary from estimates due to factors including the mix of our inventory and execution against loss prevention initiatives in our stores and distribution center. Property and equipment Property and equipment are recorded at cost less accumulated depreciation. Significant additions and improvements are capitalized, and expenditures for maintenance and repairs are expensed. Gains and losses on the disposition of property and equipment are recognized in the period incurred. Depreciation, including amortization of assets recorded under finance lease obligations, is provided using the straight-line method over the estimated useful lives of depreciable assets as follows: Buildings 30 years Furniture, fixtures, and equipment 3 to 10 years Computer software 2 to 5 years Leasehold improvements Shorter of useful life or lease term Finance leases Shorter of useful life or lease term Costs of developing or obtaining software for internal use or developing the Company’s website, such as external direct costs of materials or services and internal payroll costs directly related to the software development projects, are capitalized. For the fiscal years ended March 30, 2024, April 1, 2023, and April 2, 2022, the Company capitalized $13,115, $28,211, and $11,068, respectively, and amortized $11,007, $7,610 and $4,823, respectively, of costs in connection with the development of internally used software. Long-lived assets Long-lived assets, such as property and equipment, lease right-of-use assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset, a product recall or an adverse action or assessment by a regulator. If the sum of the estimated undiscounted future cash flows related to the asset is less than the carrying amount, we recognize a loss equal to the difference between the carrying amount and the fair value, usually determined by the estimated discounted cash flow analysis of the asset. For our TCS segment (see Note 14), we generally evaluate long-lived tangible assets at a store level, or at the lowest level at which independent cash flows can be identified. We evaluate corporate assets or other long-lived assets that are not store-specific at the consolidated level. For our Elfa segment (see Note 14), we evaluate long-lived tangible assets at the segment level. Since there is typically no active market for our long-lived tangible assets, we estimate fair values based on the expected future cash flows. We estimate future cash flows based on store-level historical results, current trends, and operating and cash flow projections. Our estimates are subject to uncertainty and may be affected by a number of factors outside our control, including general economic conditions, and the competitive environment. While we believe our estimates and judgments about future cash flows are reasonable, future impairment charges may be required if the expected cash flow estimates, as projected, do not occur or if events change requiring us to revise our estimates. Foreign currency forward contracts We account for foreign currency forward contracts in accordance with ASC 815, Derivatives and Hedging . In the TCS segment, we may utilize foreign currency forward contracts in Swedish krona to stabilize our retail gross margins and to protect our domestic operations from downward currency exposure by hedging purchases of inventory from our wholly owned subsidiary, Elfa. In the Elfa segment, we may utilize foreign currency forward contracts to hedge purchases of raw materials that are transacted in currencies other than Swedish krona, which is the functional currency of Elfa. Generally, the Company’s foreign currency forward contracts have terms from 1 to 12 months and require the Company to exchange currencies at agreed-upon rates at settlement. The Company does not hold or enter into financial instruments for trading or speculative purposes. The Company records all foreign currency forward contracts on its consolidated balance sheet at fair value. The Company records its foreign currency forward contracts on a gross basis. Forward contracts not designated as hedges are adjusted to fair value through income as SG&A. The Company accounts for its foreign currency hedge instruments as cash flow hedges, as defined. Changes in the fair value of the foreign currency hedge instruments that are considered to be effective, as defined, are recorded in other comprehensive income (loss) until the hedged item (inventory) is sold to the customer, at which time the deferred gain or loss is recognized through cost of sales. Any portion of a change in the foreign currency hedge instrument’s fair value that is considered to be ineffective, as defined, or that the Company has elected to exclude from its measurement of effectiveness, is immediately recorded in earnings as cost of sales. Self-insured liabilities We are primarily self-insured for workers’ compensation, employee health benefits and general liability claims. We record self-insurance liabilities based on claims filed, including the development of those claims, and an estimate of claims incurred but not yet reported. Factors affecting these estimates include future inflation rates, changes in severity, benefit level changes, medical costs and claim settlement patterns. Should a different amount of claims occur compared to what was estimated, or costs of the claims increase or decrease beyond what was anticipated, reserves may need to be adjusted accordingly. Self-insurance reserves for employee health benefits, workers’ compensation and general liability claims are recorded in the accrued liabilities line item of the consolidated balance sheet and were collectively $2,359 and $2,450 as of March 30, 2024 and April 1, 2023, respectively. Goodwill We evaluate goodwill annually to determine whether it is impaired. Goodwill is also tested between annual impairment tests if an event occurs or circumstances change that would indicate that the fair value of a reporting unit is less than its carrying amount. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset. If an impairment indicator exists, we test goodwill for recoverability. When performing a quantitative test for impairment, we compare the fair value of the reporting unit to its carrying amount. If the fair value of the reporting unit exceeds the carrying amount of the net assets assigned to that unit, goodwill is considered not impaired and we are not required to perform further testing. If the carrying amount of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then we would record an impairment loss equal to the difference. We measure the fair value of the operating segment using a combination of the income approach and market approach to determine the fair value of the Company to be compared against the carrying value of net assets, both level 3 valuations (as defined in Note 13). The determination of fair value requires assumptions and estimates of many critical factors, including among others, our nature and our history, financial and economic conditions affecting us, our industry and the general economy, past results, our current operations and future prospects, sales of similar businesses or capital stock of publicly held similar businesses, as well as prices, terms and conditions affecting past sales of similar businesses. Forecasts of future operations are based, in part, on operating results and management’s expectations as to future market conditions. These types of analyses contain uncertainties because they require management to make assumptions and to apply judgments to estimate industry economic factors and the profitability of future business strategies. If actual results are not consistent with our estimates and assumptions, we may be exposed to future impairment losses that could be material. See Note 2 for more information on our goodwill activity and impairment assessments performed. Trade names We annually evaluate whether our trade names continue to have an indefinite life. Trade names are reviewed for impairment annually on the first day of the fourth fiscal quarter and may be reviewed more frequently if indicators of impairment are present. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset, a product recall or an adverse action or assessment by a regulator. When performing a quantitative test, the impairment review is performed by comparing the carrying amount to the estimated fair value, determined using a discounted cash flow methodology, a level 3 valuation (as defined in Note 13). If the recorded carrying amount of the trade name exceeds its estimated fair value, an impairment charge is recorded to write the trade name down to its estimated fair value. Factors used in the valuation of intangible assets with indefinite lives include, but are not limited to, future revenue growth assumptions, estimated market royalty rates that could be derived from the licensing of our trade names to third parties, and a rate used to discount the estimated royalty cash flow projections. The valuation of trade names requires assumptions and estimates of many critical factors, which are consistent with the factors discussed under “Goodwill” above. Forecasts of future operations are based, in part, on operating results and management’s expectations as to future market conditions. These types of analyses contain uncertainties because they require management to make assumptions and to apply judgments to estimate industry economic factors and the profitability of future business strategies. If actual results are not consistent with our estimates and assumptions, we may be exposed to future impairment losses that could be material. See Note 2 for more information on our trade names activity and impairment assessments performed. Foreign currency The Company operates foreign subsidiaries in the following countries: Sweden, Norway, Finland, Denmark, Germany and Poland. The functional currency of the Company’s foreign operations is the applicable country’s currency. All assets and liabilities of foreign subsidiaries and affiliates are translated at year-end rates of exchange. Revenues and expenses of foreign subsidiaries and affiliates are translated at average rates of exchange for the year. Unrealized gains and losses on translation are reported as cumulative translation adjustments through other comprehensive income (loss). The functional currency for the Company’s wholly owned subsidiary, Elfa, is the Swedish krona. During fiscal 2023, the rate of exchange from U.S. dollar to Swedish krona increased from 10.3 to 10.7. The carrying amounts of assets related to Elfa and subject to currency fluctuation were $99,171 and $110,215 as of March 30, 2024 and April 1, 2023, respectively. Foreign currency realized gains of $118, realized losses of $23, and realized gains of $14, are included in SG&A in the consolidated statements of operations in fiscal 2023, fiscal 2022, and fiscal 2021, respectively. Recent accounting pronouncements In November 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which is intended to improve the disclosures about a public entity’s reportable segments and address requests from investors for additional, more detailed information about a reportable segment’s expenses. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. A public entity should apply the amendments in this update retrospectively to all prior periods presented in the financial statements. We do not anticipate that the adoption of this update will result in a material impact to our financial position, results of operations or cash flows. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which is intended to address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information, as well certain other amendments to improve the effectiveness of income tax disclosures. This ASU is effective for fiscal years beginning after December 15, 2024, for all public business entities. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments in this update should be applied on a prospective basis, however, retrospective application is permitted. We do not anticipate that the adoption of this update will result in a material impact to our financial position, results of operations or cash flows. |
Goodwill and trade names
Goodwill and trade names | 12 Months Ended |
Mar. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and trade names | Goodwill and trade names The estimated goodwill and trade name fair values are computed using estimates as of the measurement date, which is defined as the first day of the fiscal fourth quarter or as of an interim assessment date. The Company makes estimates and assumptions about sales, gross margins, selling, general and administrative percentages and profit margins, based on budgets and forecasts, business plans, economic projections, anticipated future cash flows, and marketplace data. Assumptions are also made for varying perpetual growth rates for periods beyond the long-term business plan period and our estimated weighted average cost of capital. There are inherent uncertainties related to these factors and management’s judgment in applying these factors. Another estimate using different, but still reasonable, assumptions could produce different results. As there are numerous assumptions and estimations utilized to derive the estimated enterprise fair value of each reporting unit, it is possible that actual results may differ from estimated results requiring future impairment charges. We conducted an annual impairment test of our goodwill balances on January 1, 2023 in accordance with the Financial Accounting Standard Board Accounting Standards Codification (ASC) Topic 350, Intangibles – Goodwill and other (" ASC 350") and an interim assessment as of April 1, 2023 due to identified indicators during the fourth quarter of fiscal 2022. In connection with our annual and interim assessments, we determined there was an impairment of goodwill in the TCS segment and recorded non-cash goodwill impairment charges of $99,726 and $97,986, as of January 1, 2023 and April 1, 2023, respectively. The charges were primarily the result of continued macroeconomic impacts on our business which led to a decline in customer demand. Due to certain indicators identified during the second quarter of fiscal 2023, we completed an interim assessment of our goodwill balance as of September 30, 2023 in accordance with ASC 350, to identify if the fair value of the reporting unit’s goodwill was less than its carrying value. In connection with our interim assessment, we determined there was an impairment of goodwill in the TCS reporting unit and recorded a non-cash goodwill impairment charge of $23,447. The charges were primarily the result of continued macroeconomic impacts on our business which led to a decline in customer demand. We conducted an interim quantitative assessment of our trade names balance as of September 30, 2023 due to identified indicators during the second quarter of fiscal 2023 which did not result in an impairment, and a qualitative assessment as of December 30, 2023, which did not result in indicators of impairment. We conducted an annual impairment test of our trade names balance on January 1, 2024 in accordance with ASC 350 and an interim assessment as of March 30, 2024 due to identified indicators during the fourth quarter of fiscal 2023. In connection with our annual and interim assessments, we determined there was an impairment of the TCS trade name of $63,753 and an impairment of our Elfa trade name of $10,079. Future impairment charges could be required if we do not achieve our current net sales and profitability projections. The Company recorded no impairments during fiscal 2021 as a result of the goodwill and trade names impairment tests performed. The changes in the carrying amounts of goodwill and trade names were as follows in fiscal 2023 and fiscal 2022: Goodwill Trade names Balance at April 2, 2022 Gross balance 428,811 256,472 Accumulated impairment charges (207,652) (31,534) Total, net $ 221,159 $ 224,938 Foreign currency translation adjustments — (3,660) Balance at April 1, 2023 Gross balance 428,811 252,812 Fiscal 2022 impairment charges (197,712) — Accumulated impairment charges (207,652) (31,534) Total, net $ 23,447 $ 221,278 Foreign currency translation adjustments — (997) Balance at March 30, 2024 Gross balance 428,811 251,815 Fiscal 2023 impairment charges (23,447) (73,832) Accumulated impairment charges (405,364) (31,534) Total, net $ — $ 146,449 |
Detail of certain balance sheet
Detail of certain balance sheet accounts | 12 Months Ended |
Mar. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Detail of certain balance sheet accounts | Detail of certain balance sheet accounts March 30, April 1, Accounts receivable, net: Trade receivables, net $ 13,943 $ 18,269 Credit card receivables 4,859 6,165 Other receivables 3,208 1,436 $ 22,010 $ 25,870 Inventory: Finished goods $ 150,493 $ 160,108 Raw materials 6,869 9,289 Work in progress 1,072 1,240 $ 158,434 $ 170,637 Property and equipment, net: Land and buildings $ 15,756 $ 15,693 Furniture and fixtures 87,365 84,359 Machinery and equipment 114,684 110,908 Computer software and equipment 180,332 163,943 Leasehold improvements 182,515 171,522 Construction in progress 10,111 10,363 Other 1,200 646 591,963 557,434 Less accumulated depreciation and amortization (436,561) (398,732) $ 155,402 $ 158,702 Accrued liabilities: Accrued payroll, benefits and bonuses $ 20,590 $ 24,224 Unearned revenue 14,385 15,700 Accrued transaction and property tax 12,272 14,072 Gift cards and store credits outstanding 13,365 13,002 Accrued sales returns 1,974 3,366 Accrued interest 215 189 Other accrued liabilities 7,275 4,120 $ 70,076 $ 74,673 |
Long-term debt and revolving li
Long-term debt and revolving lines of credit | 12 Months Ended |
Mar. 30, 2024 | |
Debt Disclosure [Abstract] | |
Long-term debt and revolving lines of credit | Long-term debt and revolving lines of credit Long-term debt and revolving lines of credit consist of the following: March 30, April 1, Senior secured term loan facility $ 163,500 $ 165,500 2019 Elfa revolving facilities — 2,423 Obligations under finance leases 634 136 Revolving credit facility 16,000 5,000 Total debt 180,134 173,059 Less current portion (2,166) (4,486) Less deferred financing costs (1) (3,357) (5,188) Total long-term debt $ 174,611 $ 163,385 ___________________________ (1) Represents deferred financing costs related to our Senior Secured Term Loan Facility, which are presented net of long-term debt in the consolidated balance sheet. Scheduled total revolving lines of credit and debt maturities for the fiscal years subsequent to March 30, 2024, are as follows: Within 1 year $ 2,196 2 years 177,674 3 years 135 4 years 129 5 years — Thereafter — $ 180,134 Senior Secured Term Loan Facility On April 6, 2012, the Company, The Container Store, Inc. and certain of our domestic subsidiaries entered into a credit agreement with JPMorgan Chase Bank, N.A., as Administrative Agent and Collateral Agent, and the lenders party thereto (as amended to date, the “Senior Secured Term Loan Facility”). On June 14, 2023, the Company entered into Amendment No. 8 (the “Eighth Amendment”). Pursuant to the terms of the Eighth Amendment, the parties agreed to replace the LIBOR-based interest rate applicable to loans under the Senior Secured Term Loan Facility with a SOFR-based interest rate, subject to adjustment as specified in the Eighth Amendment. The Company is required to make quarterly amortization payments of $500 on the term loan facility, with the remaining balance due on January 31, 2026. Prior to the date of delivery of a compliance certificate for the fiscal year ended March 30, 2024, the applicable interest rate margin for SOFR loans was 4.75%, subject to a floor of 1.00%, and 3.75% for base rate loans and, thereafter, may step up to 5.00% for SOFR Loans and 4.00% for base rate loans unless the consolidated leverage ratio achieved is less than or equal to 2.75 to 1.00. As of March 30, 2024, the aggregate principal amount in outstanding borrowings under the Senior Secured Term Loan Facility was $160,142 net of deferred financing costs, and the consolidated leverage ratio was approximately 3.3x. The loans under the Senior Secured Term Loan Facility mature on January 31, 2026. The Company capitalizes certain costs associated with issuance of various debt instruments. These deferred financing costs are amortized to interest expense on a straight-line method, which is materially consistent with the effective interest method, over the terms of the related debt agreements. In fiscal 2020, the Company capitalized $5,579 of fees associated with the Seventh Amendment, which will be amortized through January 31, 2026. The Senior Secured Term Loan Facility is secured by (a) a first priority security interest in substantially all of our assets (other than the collateral that secures the Revolving Credit Facility described below on a first-priority basis and excluding stock in foreign subsidiaries in excess of 65%, assets of non-guarantors and subject to certain other exceptions) and (b) a second priority security interest in the assets securing the Revolving Credit Facility described below on a first- priority basis. Obligations under the Senior Secured Term Loan Facility are guaranteed by the Company and certain of The Container Store, Inc.’s U.S. subsidiaries. The Senior Secured Term Loan Facility contains a number of covenants that, among other things, restrict our ability, subject to specified exceptions, to incur additional debt; incur additional liens and contingent liabilities; sell or dispose of assets; merge with or acquire other companies; liquidate or dissolve ourselves, engage in lines of business that are not in a related line of business; make loans, advances or guarantees; engage in transactions with affiliates; and make investments. In addition, the Senior Secured Term Loan Facility contains certain cross-default provisions and requires certain mandatory prepayments of the loans thereunder upon the occurrence of specific events, including an Excess Cash Flow (as such term is defined in the Senior Secured Term Loan Facility) requirement. As of March 30, 2024, we were in compliance with all covenants under the Senior Secured Term Loan Facility and no Event of Default (as such term is defined in the Senior Secured Term Loan Facility) had occurred. Revolving Credit Facility On April 6, 2012, the Company, The Container Store, Inc. and certain of our domestic subsidiaries entered into an asset-based revolving credit agreement with the lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent and Collateral Agent, and Wells Fargo Bank, National Association, as Syndication Agent (as amended, the “Revolving Credit Facility”). On May 22, 2023, the Company entered into Amendment No. 6 (the “Sixth Amendment”), pursuant to which the LIBOR-based interest rate applicable to borrowings under the Revolving Credit Facility was replaced with SOFR-based interest rate, subject to adjustment as specified in the Sixth Amendment. The Revolving Credit Facility matures on the earlier of (a) November 25, 2025 and (b) October 31, 2025 if any portion of the Senior Secured Term Loan Facility remains outstanding on such date and the maturity date of the Senior Secured Term Loan Facility is not extended. The aggregate principal amount of the facility is $100,000. Borrowings under the Revolving Credit Facility accrue interest at Adjusted Term SOFR +1.25%. In addition, the Revolving Credit Facility includes an uncommitted incremental revolving facility in the amount of $50,000, which is subject to receipt of lender commitments and satisfaction of specified conditions. The Revolving Credit Facility provides that proceeds are to be used for working capital and other general corporate purposes, and allows for swing line advances of up to $15,000 and the issuance of letters of credit of up to $40,000. The availability of credit at any given time under the Revolving Credit Facility is limited by reference to a borrowing base formula based upon numerous factors, including the value of eligible inventory, eligible accounts receivable, and reserves established by the administrative agent. As a result of the borrowing base formula, the actual borrowing availability under the Revolving Credit Facility could be less than the stated amount of the Revolving Credit Facility (as reduced by the actual borrowings and outstanding letters of credit under the Revolving Credit Facility). The Revolving Credit Facility is secured by (a) a first-priority security interest in substantially all of our personal property, consisting of inventory, accounts receivable, cash, deposit accounts, and other general intangibles, and (b) a second-priority security interest in the collateral that secures the Senior Secured Term Loan Facility on a first-priority basis, as described above (excluding stock in foreign subsidiaries in excess of 65%, and assets of non-guarantor subsidiaries and subject to certain other exceptions). Obligations under the Revolving Credit Facility are guaranteed by the Company and certain of The Container Store, Inc.’s U.S. subsidiaries. The Revolving Credit Facility contains a number of covenants that, among other things, restrict our ability, subject to specified exceptions, to incur additional debt; incur additional liens and contingent liabilities; sell or dispose of assets; merge with or acquire other companies; liquidate or dissolve ourselves, engage in businesses that are not in a related line of business; make loans, advances or guarantees; engage in transactions with affiliates; and make investments. In addition, the financing agreements contain certain cross-default provisions. We are required to maintain a consolidated fixed-charge coverage ratio of 1.0 to 1.0 if excess availability is less than $10,000 at any time. As of March 30, 2024, we were in compliance with all covenants under the Revolving Credit Facility and no Event of Default (as such term is defined in the Revolving Credit Facility) had occurred. Under the Revolving Credit Facility, provided no event of default has occurred and is continuing, The Container Store, Inc. is permitted to pay dividends to the Company, if after giving effect to such payments, on a pro forma basis, (i) availability under the Revolving Credit Facility exceeds $15,000 or (ii) availability under the Revolving Credit Facility exceeds $12,500 and the Consolidated Fixed Charge Coverage Ratio (as defined in the Revolving Credit Facility) is not less than 1.10 to 1.0, and pursuant to certain other limited exceptions. There was $80,980 available under the Revolving Credit Facility as of March 30, 2024, based on the factors described above. Maximum borrowings, including letters of credit issued under the Revolving Credit Facility during the period ended March 30, 2024, were $34,020. The Container Store, Inc. had $16,000 of borrowings outstanding under the Revolving Credit Facility as of March 30, 2024. 2019 Elfa Senior Secured Credit Facilities On March 18, 2019 , Elfa refinanced its master credit agreement with Nordea Bank AB entered into on April 1, 2014 and the senior secured credit facilities thereunder, and entered into a new master credit agreement with Nordea Bank Abp, filial i Sverige (“Nordea Bank”), which consists of (i) an SEK 110.0 million (approximately $10,296 as of March 30, 2024 ) revolving credit facility (the “2019 Original Revolving Facility”), (ii) upon Elfa’s request, an additional SEK 115.0 million (approximately $10,764 as of March 30, 2024 ) revolving credit facility (the “2019 Additional Revolving Facility” and together with the 2019 Original Revolving Facility, the “2019 Elfa Revolving Facilities”), and (iii) an uncommitted term loan facility in the amount of SEK 25.0 million (approximately $2,340 as of March 30, 2024 ), which is subject to receipt of Nordea Bank’s commitment and satisfaction of specified conditions (the “Incremental Term Facility”, together with the 2019 Elfa Revolving Facilities, the “2019 Elfa Senior Secured Credit Facilities”). The term for the 2019 Elfa Senior Secured Credit Facilities began on April 1, 2019 and , pursuant to an amendment entered into in April 2023, matures on March 31, 2025. Loans borrowed under the 2019 Elfa Revolving Facilities bear interest at Nordea Bank’s base rate +1.40%. Any loan borrowed under the Incremental Term Facility would bear interest at Stibor +1.70%. The 2019 Elfa Senior Secured Credit Facilities are secured by the majority of assets of Elfa. The 2019 Elfa Senior Secured Credit Facilities contains a number of covenants that, among other things, restrict Elfa’s ability, subject to specified exceptions, to incur additional liens, sell or dispose of assets, merge with other companies, engage in businesses that are not in a related line of business and make guarantees. In addition, Elfa is required to maintain (i) a Group Equity Ratio (as defined in the 2019 Elfa Senior Secured Credit Facilities) of not less than 32.5% and (ii) a consolidated ratio of net debt to EBITDA (as defined in the 2019 Elfa Senior Secured Credit Facilities) of less than 3.20. As of March 30, 2024, Elfa was in compliance with all covenants under the 2019 Elfa Senior Secured Credit Facilities and no Event of Default (as defined in the 2019 Elfa Senior Secured Credit Facilities) had occurred. There was $10,296 available under the 2019 Elfa Senior Secured Credit Facilities as of March 30, 2024, based on the factors described above. There were no borrowings outstanding under the 2019 Elfa Senior Secured Credit Facilities as of March 30, 2024. Deferred financing costs The Company capitalizes certain costs associated with issuance of various debt instruments. These deferred financing costs are amortized to interest expense on a straight-line method, which is materially consistent with the effective interest method, over the terms of the related debt agreements. In fiscal 2020, the Company capitalized $5,579 of fees associated with the Seventh Amendment, which will be amortized through January 31, 2026. Amortization expense of deferred financing costs was $1,884, $1,884, and $1,883, in fiscal 2023, fiscal 2022, and fiscal 2021, respectively. The following is a schedule of amortization expense of deferred financing costs: Senior Secured Revolving Total Within 1 year $ 1,751 $ 51 $ 1,802 2 years 1,606 47 1,653 3 years — — — 4 years — — — 5 years — — — Thereafter — — — $ 3,357 $ 98 $ 3,455 |
Income taxes
Income taxes | 12 Months Ended |
Mar. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes Components of the provision for income taxes are as follows: Fiscal Year Ended March 30, April 1, April 2, (Loss) income before income taxes: U.S. $ (122,030) $ (149,604) $ 98,389 Foreign (3,376) 5,838 14,305 $ (125,406) $ (143,766) $ 112,694 Current Federal $ 1,459 $ 10,942 $ 18,510 State 313 3,758 6,194 Foreign 860 741 2,651 Total current provision 2,632 15,441 27,355 Deferred Federal (17,779) (490) 2,998 State (5,365) (228) 326 Foreign (1,607) 367 297 Total deferred (benefit) provision (24,751) (351) 3,621 Total (benefit) provision for income taxes $ (22,119) $ 15,090 $ 30,976 Effective income tax rate reconciliation Differences between the actual provision for income taxes and the amounts computed by applying the statutory federal tax rate to income before taxes are as follows: Fiscal Year Ended March 30, April 1, April 2, (Benefit) provision computed at federal statutory rate $ (26,335) $ (30,191) $ 23,666 Permanent differences 7,960 42,283 1,460 Change in valuation allowance (46) 422 80 State income taxes, net of federal benefit (3,991) 2,810 5,189 Effect of foreign income taxes (5) (31) (75) Other, net 298 (203) 656 $ (22,119) $ 15,090 $ 30,976 Deferred taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Components of deferred tax assets and liabilities as of March 30, 2024 and April 1, 2023, are as follows: March 30, April 1, Deferred tax assets: Inventory $ 2,602 $ 2,422 Loss and credit carryforwards 5,938 5,619 Stock-based compensation 797 4,129 Accrued liabilities 7,209 4,346 Operating lease liabilities 112,644 96,232 Capital assets 54 73 Other 742 31 129,986 112,852 Valuation allowance (5,301) (5,402) Total deferred tax assets 124,685 107,450 Deferred tax liabilities: Intangibles (38,249) (56,990) Operating lease assets (105,005) (88,325) Capital assets (5,223) (10,905) Total deferred tax liabilities (148,477) (156,220) Net deferred tax liabilities $ (23,792) $ (48,770) The Company has recorded deferred tax assets and liabilities based upon estimates of their realizable value with such estimates based upon likely future tax consequences. In assessing the need for a valuation allowance, the Company considers both positive and negative evidence related to the likelihood of realization of the deferred tax assets. If, based on the weight of available evidence, it is more-likely-than-not that a deferred tax asset will not be realized, the Company records a valuation allowance. Foreign and domestic tax credits, net of valuation allowances, totaled approximately $298 at March 30, 2024 and approximately $472 at April 1, 2023. The various credits available at March 30, 2024 expire in the 2026 tax year. The Company had deferred tax assets for foreign and state net operating loss carryovers of $2,468 at March 30, 2024, and approximately $1,975 at April 1, 2023. Valuation allowances of $1,909 and $1,975 were recorded against the net operating loss deferred tax assets at March 30, 2024 and April 1, 2023, respectively. The Company files income tax returns in the U.S. federal jurisdiction, various states and foreign jurisdictions. The Company is currently subject to U.S. federal income tax examinations for the year ended March 30, 2019 and forward. With respect to state and local jurisdictions and countries outside of the United States, the Company and subsidiaries are typically subject to examination for three to six years after the income tax returns have been filed. We operate in certain jurisdictions outside the United States. ASC 740-30 provides that the undistributed earnings of a foreign subsidiary be accounted for as a temporary difference under the presumption that all undistributed earnings will be distributed to the parent company as a dividend. Sufficient evidence of the intent to permanently reinvest the earnings in the jurisdiction where earned precludes a company from recording the temporary difference. For purposes of ASC 740-30, the Company does not consider the earnings subject to the transition tax and GILTI under the Tax Act permanently reinvested. All other earnings are considered permanently reinvested. The Company has elected an accounting policy to recognize GILTI as a period cost when incurred. |
Employee benefit plans
Employee benefit plans | 12 Months Ended |
Mar. 30, 2024 | |
Retirement Benefits [Abstract] | |
Employee benefit plans | Employee benefit plans 401(k) Plan Prior to January 1, 2020, employees of the Company had to complete 11 months of service to participate in the Company’s 401(k) Plan. Effective January 1, 2020, all domestic employees of the Company are eligible to participate in the Company’s 401(k) Plan immediately upon date of hire. Participants may contribute up to 80% of annual compensation, limited to twenty thousand five hundred annually (twenty-eight thousand for participants aged 50 years and over). Effective March 30, 2024, the Company canceled 401(k) matching contributions up to 4% for the foreseeable future. The amount charged to expense for the Company’s matching contribution was $3,876, $4,062 and $2,083, for fiscal 2023, fiscal 2022, and fiscal 2021, respectively. Non-qualified retirement plan The Company has a non-qualified retirement plan whereby certain employees can elect to defer a portion of their compensation into retirement savings accounts. Under the plan, there is no requirement that the Company match contributions, although the Company may contribute matching payments at its sole discretion. No matching contributions were made to the plan during any of the periods presented. The Company has established a rabbi trust that serves as an investment to the corresponding non-qualified plan liability. The assets of the rabbi trust are general assets of the Company and primarily consist of mutual funds. The total fair value of the plan asset recorded in other current assets was $4,125 and $3,743 as of March 30, 2024 and April 1, 2023, respectively. The total carrying value of the plan liability recorded in accrued liabilities was $4,127 and $3,754 as of March 30, 2024 and April 1, 2023, respectively. Pension plan The Company provides pension benefits to the employees of Elfa under collectively bargained pension plans in Sweden, which are recorded in other long-term liabilities. The defined benefit plan provides benefits for participating employees based on years of service and final salary levels at retirement. The defined benefit plans are unfunded and the plan was frozen in fiscal 2021. As such, a curtailment gain of $669 was recorded in the Consolidated statement of income during fiscal 2021. Certain employees also participate in defined contribution plans for which Company contributions are determined as a percentage of participant compensation. The following is a reconciliation of the changes in the defined benefit obligations, a statement of funded status, and the related weighted-average assumptions: March 30, April 1, Change in benefit obligation: Projected benefit obligation, beginning of year $ 3,402 $ 4,553 Service cost — — Interest cost 136 94 Benefits paid (181) (169) Actuarial loss (gain) 154 (634) Exchange rate gains (109) (442) Projected benefit obligation, end of year 3,402 3,402 Fair value of plan assets, end of year — — Underfunded status, end of year $ (3,402) $ (3,402) Discount rate 3.7 % 4.2 % Rate of pay increases — % — % The following table provides the components of net periodic benefit cost for fiscal years 2023, 2022, and 2021: Fiscal Year Ended March 30, April 1, April 2, Components of net periodic benefit cost: Defined benefit plans: Service cost $ — $ — $ 19 Interest cost 136 94 101 Curtailment gain — — (669) Amortization of unrecognized net loss 75 86 118 Net periodic benefit cost for defined benefit plan 211 180 (431) Defined contribution plans 1,812 1,803 1,824 Total net periodic benefit cost $ 2,023 $ 1,983 $ 1,393 |
Stock-based compensation
Stock-based compensation | 12 Months Ended |
Mar. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based compensation | Stock-based compensation On October 16, 2013, the Board approved the 2013 Incentive Award Plan (as subsequently amended and restated, the “2013 Equity Plan”). The 2013 Equity Plan provided for grants of nonqualified stock options, incentive stock options, restricted stock, restricted stock units, deferred stock awards, deferred stock units, stock appreciation rights, dividends equivalents, performance awards, and stock payments. On September 12, 2017, the Company's shareholders approved The Container Store Group Inc. Amended and Restated 2013 Incentive Award Plan (the “Amended and Restated 2013 Plan”). The Amended and Restated 2013 Plan (i) increased the number of shares of common stock available for issuance under such plan from 3,616,570 shares to 11,116,570 shares; (ii) was intended to allow awards under the Amended and Restated 2013 Plan to continue to qualify as tax-deductible performance-based compensation under Section 162(m) of the Internal Revenue Code of 1986, as amended, subject to anticipated changes resulting from the Tax Act as described below; and (iii) made certain minor technical changes to the terms of the Amended and Restated 2013 Plan. On August 30, 2023, the Company’s shareholders approved The Container Store Group, Inc. 2023 Incentive Award Plan (the “2023 Plan”) which replaced the 2013 Equity Plan. Following approval of the 2023 Plan, no further awards were granted under the 2013 Equity Plan. However, the terms and conditions of the Amended and Restated 2013 Plan will continue to govern any outstanding awards granted thereunder. The 2023 Plan provides for the grant of stock options, including incentive stock options and nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance bonus awards, performance stock units, other stock or cash-based awards, and dividend equivalents to eligible individuals. As of March 30, 2024, there are 4,478,151 shares authorized and 4,311,563 shares available for grant under the 2023 Plan. Awards that are surrendered or terminated without issuance of shares are available for future grants. Restricted Stock Awards The Company periodically grants time-based and performance-based restricted stock awards under the Company’s Amended and Restated Plan to certain Directors and employees. The following table summarizes the Company's restricted stock award grants during fiscal 2023, fiscal 2022, and fiscal 2021. Grant Date Total Grant Date Number of Time-Based Number of Performance- Number of June 1, 2021 335,719 $ 13.22 98,343 3 years 237,376 (1) 3 years 237,376 September 1, 2021 90,040 $ 11.55 90,040 1 year — N/A N/A March 29, 2022 6,408 $ 8.67 6,408 1 year — N/A N/A June 1, 2022 994,681 $ 7.56 234,062 3 years 760,619 (2) 3 years 0 August 31, 2022 153,392 $ 6.78 153,392 1 year — N/A N/A June 1, 2023 1,586,596 $ 2.48 394,729 3 years 1,191,867 (3) 3 years 0 August 30, 2023 146,340 $ 2.34 146,340 1 year — N/A N/A March 26, 2024 20,848 $ 1.08 20,848 1 year — N/A N/A ___________________________ (1) These performance-based restricted stock awards vest based on achievement of fiscal 2021 performance targets and are also subject to time-based vesting requirements. (2) These performance-based restricted stock awards vest based on achievement of fiscal 2022 performance targets and are also subject to time-based vesting requirements. (3) These performance-based restricted stock awards vest based on achievement of fiscal 2023 performance targets and are also subject to time-based vesting requirements. Stock-based compensation cost related to restricted stock awards was $1,870, $3,382 and $4,262 for fiscal 2023, fiscal 2022, and fiscal 2021, respectively. Unrecognized compensation expense related to outstanding restricted stock awards to employees as of March 30, 2024 is expected to be $1,420 (net of estimated forfeitures) to be recognized on a straight-line basis over a weighted average period of 1.1 years. The following table summarizes the Company’s restricted stock awards activity during fiscal 2022 and fiscal 2023: Restricted Stock Weighted Average Nonvested at April 2, 2022 990,773 $ 7.89 Granted 1,148,073 7.45 Vested (412,988) 7.84 Forfeited (877,301) 7.50 Withheld related to net settlement (86,482) 6.22 Nonvested at April 1, 2023 762,075 $ 7.87 Granted 1,753,777 2.17 Vested (426,249) 7.23 Forfeited (1,351,489) 2.45 Withheld related to net settlement (57,984) 6.41 Nonvested at March 30, 2024 680,130 $ 4.39 Stock Options The Company periodically grants nonqualified stock options under the Amended and Restated Plan to non-employee directors of the Company. The stock option grants generally vest in equal annual installments over 3 years. The stock option grants are approved by the Board and consist of nonqualified stock options as defined by the IRS for corporate and individual tax reporting purposes. There were no stock option grants in fiscal 2023, fiscal 2022 or fiscal 2021. In connection with our stock-based compensation plans, the Board considers the estimated fair value of the Company’s stock when setting the stock option exercise price as of the date of each grant. The Board determines the exercise price of stock options based on the closing price of the Company’s common stock as reported on The New York Stock Exchange on the grant date. Stock-based compensation cost is measured at the grant date fair value and is recognized as an expense in the consolidated statements of operations, on a straight-line basis, over the employee’s requisite service period (generally the vesting period of the equity grant). The Company estimates forfeitures for option grants that are not expected to vest. The Company issues new shares of common stock upon stock option exercise. Stock-based compensation cost related to stock options was $0 for each of fiscal 2023, fiscal 2022, and fiscal 2021. As of March 30, 2024, there was zero remaining unrecognized compensation cost (net of estimated forfeitures). The intrinsic value of shares exercised was $0, $155, and $415 during fiscal 2023, fiscal 2022, and fiscal 2021, respectively. The fair value of shares vested was $0 for each of fiscal 2023, fiscal 2022, and fiscal 2021. The following table summarizes the Company’s stock option activity during fiscal 2023, fiscal 2022, and fiscal 2021: Fiscal Year 2023 2022 2021 Shares Weighted- Weighted- Aggregate Shares Weighted- Weighted- Aggregate Shares Weighted- Weighted- Aggregate Beginning balance 1,713,070 $ 15.74 1,966,465 $ 15.49 2,259,041 $ 15.07 Granted — $ — — $ — — $ — Exercised — $ — (73,594) $ 4.62 (125,777) $ 4.50 Forfeited — $ — — $ — — $ — Expired (1,330,988) $ 18.00 (179,801) $ 17.53 (166,799) $ 18.09 Ending balance 382,082 $ 7.86 2.51 $ — 1,713,070 $ 15.74 1.24 $ — 1,966,465 $ 15.49 2.21 $ 1,287,521 Vested and exercisable at end of year 382,082 $ 7.86 2.51 $ — 1,713,070 $ 15.74 1.24 $ — 1,966,465 $ 15.49 2.21 $ 1,287,521 |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Mar. 30, 2024 | |
Equity [Abstract] | |
Shareholders' equity | Shareholders’ equity Common stock As of March 30, 2024, the Company had 250,000,000 shares of common stock authorized, with a par value of $0.01, of which 49,607,811 were issued. The holders of common stock are entitled to one vote per common share. The holders have no preemptive or other subscription rights and there are no redemptions or sinking fund provisions with respect to such shares. Common stock is subordinate to any preferred stock outstanding with respect to rights upon liquidation and dissolution of the Company. Preferred stock As of March 30, 2024, the Company had 5,000,000 shares of preferred stock authorized, with a par value of $0.01, of which no shares were issued or outstanding. Share repurchase program On August 1, 2022, the Board of Directors of the Company approved a share repurchase program with authorization to purchase up to $30,000 of the Company’s common stock. Repurchases under the program may be made in the open market, in privately negotiated transactions or otherwise, with the amount and timing of repurchases to be determined at the Company’s discretion, depending on market conditions and corporate needs. Open market repurchases will be structured to occur in accordance with applicable federal securities laws, including within the pricing and volume requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. This program does not obligate the Company to acquire any particular amount of common stock and may be modified, suspended or terminated at any time at the discretion of its board of directors. The Company expects to fund repurchases with existing cash on hand. As of March 30, 2024, $25,000 remains available to repurchase common stock under the share repurchase program. |
Accumulated other comprehensive
Accumulated other comprehensive loss | 12 Months Ended |
Mar. 30, 2024 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated other comprehensive loss | Accumulated other comprehensive loss Accumulated other comprehensive loss (“AOCL”) consists of changes in our foreign currency hedge contracts, pension liability adjustment, and foreign currency translation. The components of AOCL, net of tax, were as follows for fiscal 2021, 2022 and 2023: Foreign Pension Foreign Total Balance at April 03, 2021 $ 3,174 $ (2,415) $ (19,762) $ (19,003) Other comprehensive (loss) income before reclassifications, net of tax (777) 414 (5,824) (6,187) Amounts reclassified to earnings, net of tax (2,346) 92 — (2,254) Net current period other comprehensive (loss) income (3,123) 506 (5,824) (8,441) Balance at April 2, 2022 $ 51 $ (1,909) $ (25,586) $ (27,444) Other comprehensive (loss) income before reclassifications, net of tax (51) 792 (5,806) (5,065) Amounts reclassified to earnings, net of tax — — — — Net current period other comprehensive (loss) income (51) 792 (5,806) (5,065) Balance at April 1, 2023 $ — $ (1,117) $ (31,392) $ (32,509) Other comprehensive (loss) income before reclassifications, net of tax — (26) (908) (934) Amounts reclassified to earnings, net of tax — — — — Net current period other comprehensive (loss) income — (26) (908) (934) Balance at March 30, 2024 $ — $ (1,143) $ (32,300) $ (33,443) The unrecognized net actuarial loss included in accumulated other comprehensive income as of March 30, 2024 and April 1, 2023 was $1,143 and $1,117, respectively. Amounts reclassified from AOCL to earnings for the pension liability adjustment category are generally included in cost of sales and selling, general and administrative expenses in the Company’s consolidated statements of operations. For a description of the Company’s employee benefit plans, refer to Note 6. Amounts reclassified from AOCL to earnings for the foreign currency hedge instruments category are generally included in cost of sales in the Company’s consolidated statements of operations. For a description of the Company’s use of foreign currency forward contracts, refer to Note 10. |
Foreign currency forward contra
Foreign currency forward contracts | 12 Months Ended |
Mar. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Foreign currency forward contracts | Foreign currency forward contracts The Company’s international operations and purchases of its significant product lines from foreign suppliers are subject to certain opportunities and risks, including foreign currency fluctuations. In the TCS segment, we utilize foreign currency forward contracts in Swedish krona to stabilize our retail gross margins and to protect our domestic operations from downward currency exposure by hedging purchases of inventory from our wholly owned subsidiary, Elfa. Forward contracts in the TCS segment are designated as cash flow hedges, as defined by ASC 815. In the Elfa segment, we utilize foreign currency forward contracts to hedge purchases, primarily of raw materials, that are transacted in currencies other than Swedish krona, which is the functional currency of Elfa. Forward contracts in the Elfa segment are economic hedges, and are not designated as cash flow hedges as defined by ASC 815. In fiscal 2023, fiscal 2022, and fiscal 2021, the TCS segment used forward contracts for 0%, 1%, and 97% of inventory purchases in Swedish krona each year, respectively. Generally, the Company’s foreign currency forward contracts have terms from 1 to 12 months and require the Company to exchange currencies at agreed-upon rates at settlement. The counterparties to the contracts consist of a limited number of major domestic and international financial institutions. The Company does not hold or enter into financial instruments for trading or speculative purposes. The Company records its foreign currency forward contracts on a gross basis and generally does not require collateral from these counterparties because it does not expect any losses from credit exposure. The Company records all foreign currency forward contracts on its consolidated balance sheet at fair value. The Company accounts for its foreign currency hedge instruments in the TCS segment as cash flow hedges, as defined. Changes in the fair value of the foreign currency hedge instruments that are considered to be effective, as defined, are recorded in other comprehensive income (loss) until the hedged item (inventory) is sold to the customer, at which time the deferred gain or loss is recognized through cost of sales. Any portion of a change in the foreign currency hedge instrument’s fair value that is considered to be ineffective, as defined, or that the Company has elected to exclude from its measurement of effectiveness, is immediately recorded in earnings as cost of sales. The Company assessed the effectiveness of the foreign currency hedge instruments and determined the foreign currency hedge instruments were highly effective in the fiscal years in which they were utilized. Forward contracts not designated as hedges in the Elfa segment are adjusted to fair value as SG&A expenses on the consolidated statements of operations. During fiscal 2023, the Company did not recognize any amounts associated with the change in fair value of forward contracts not designated as hedge instruments. The Company had zero net impact in AOCL related to foreign currency hedge instruments at March 30, 2024. There was zero net impact for unrealized gain/loss for settled foreign currency hedge instruments related to inventory on hand as of March 30, 2024. The changes in fair value of the Company’s foreign currency hedge instruments that qualify as cash flow hedges and are included in accumulated other comprehensive income (loss), net of taxes, are presented in Note 9 of these financial statements. |
Leases
Leases | 12 Months Ended |
Mar. 30, 2024 | |
Leases [Abstract] | |
Leases | Leases We conduct all of our U.S. operations from leased facilities that include our support center, distribution centers, manufacturing facilities, and 102 store locations. The support center, distribution centers, manufacturing facilities, and stores are leased under operating leases that generally expire over the next 1 to 15 years. We also lease computer hardware under operating leases that generally expire over the next few years. In most cases, management expects that in the normal course of business, leases will be renewed or replaced by other leases. The Company also has finance leases at our Elfa segment which are immaterial. Lease expense on operating leases is recorded on a straight-line basis over the term of the lease, commencing on the date the Company takes possession of the leased property and is recorded in selling, general and administrative expenses ("SG&A"). We consider lease payments that cannot be predicted with reasonable certainty upon lease commencement to be variable lease payments, which are recorded as incurred each period and are excluded from our calculation of lease liabilities. Our variable lease payments include lease payments that are based on a percentage of sales. Upon lease commencement, we recognize the lease liability measured at the present value of the fixed future minimum lease payments. We have elected the practical expedient to not separate lease and non-lease components. Therefore, lease payments included in the measurement of the lease liability include all fixed payments in the lease arrangement. We record a right-of-use asset for an amount equal to the lease liability, increased for any prepaid lease costs and initial direct costs and reduced by any lease incentives. We remeasure the lease liability and right-of-use asset when a change to our future minimum lease payments occurs. Key assumptions and judgments included in the determination of the lease liability include the discount rate applied to present value of the future lease payments and the exercise of renewal options. Many of our leases contain renewal options. The option periods are generally not included in the lease term used to measure our lease liabilities and right-of-use assets upon commencement as exercise of the options is not reasonably certain. We remeasure the lease liability and right-of-use asset when we are reasonably certain to exercise a renewal option. Discount Rate Our leases do not provide information about the rate implicit in the lease. Therefore, we utilize an incremental borrowing rate to calculate the present value of our future lease obligations. The incremental borrowing rate represents the rate of interest we would have to pay on a collateralized borrowing, for an amount equal to the lease payments, over a similar term and in a similar economic environment. The components of lease costs for the fiscal year ended March 30, 2024 and April 1, 2023 were as follows: Fiscal Year Ended March 30, 2024 April 1, 2023 Operating lease costs $ 94,974 $ 91,009 Variable lease costs 707 1,113 Total lease costs $ 95,681 $ 92,122 We do not have sublease income and do not recognize lease assets or liabilities for short-term leases, defined as operating leases with initial terms of less than 12 months. Our short-term lease costs were not material for fiscal 2023. Weighted average remaining operating lease term and incremental borrowing rate as of March 30, 2024 and April 1, 2023 were as follows: Fiscal Year Ended March 30, 2024 April 1, 2023 Weighted average remaining lease term (years) 6.9 6.5 Weighted average incremental borrowing rate 9.5% 10.5% As of March 30, 2024, future minimum lease payments under our operating lease liabilities were as follows: Operating leases (1) Within 1 year $ 97,725 2 years 96,824 3 years 88,570 4 years 76,815 5 years 62,726 Thereafter 176,529 Total lease payments $ 599,189 Less amount representing interest (159,973) Total lease liability $ 439,216 Less current lease liability (60,692) Total noncurrent lease liability $ 378,524 ___________________________ (1) |
Leases | Leases We conduct all of our U.S. operations from leased facilities that include our support center, distribution centers, manufacturing facilities, and 102 store locations. The support center, distribution centers, manufacturing facilities, and stores are leased under operating leases that generally expire over the next 1 to 15 years. We also lease computer hardware under operating leases that generally expire over the next few years. In most cases, management expects that in the normal course of business, leases will be renewed or replaced by other leases. The Company also has finance leases at our Elfa segment which are immaterial. Lease expense on operating leases is recorded on a straight-line basis over the term of the lease, commencing on the date the Company takes possession of the leased property and is recorded in selling, general and administrative expenses ("SG&A"). We consider lease payments that cannot be predicted with reasonable certainty upon lease commencement to be variable lease payments, which are recorded as incurred each period and are excluded from our calculation of lease liabilities. Our variable lease payments include lease payments that are based on a percentage of sales. Upon lease commencement, we recognize the lease liability measured at the present value of the fixed future minimum lease payments. We have elected the practical expedient to not separate lease and non-lease components. Therefore, lease payments included in the measurement of the lease liability include all fixed payments in the lease arrangement. We record a right-of-use asset for an amount equal to the lease liability, increased for any prepaid lease costs and initial direct costs and reduced by any lease incentives. We remeasure the lease liability and right-of-use asset when a change to our future minimum lease payments occurs. Key assumptions and judgments included in the determination of the lease liability include the discount rate applied to present value of the future lease payments and the exercise of renewal options. Many of our leases contain renewal options. The option periods are generally not included in the lease term used to measure our lease liabilities and right-of-use assets upon commencement as exercise of the options is not reasonably certain. We remeasure the lease liability and right-of-use asset when we are reasonably certain to exercise a renewal option. Discount Rate Our leases do not provide information about the rate implicit in the lease. Therefore, we utilize an incremental borrowing rate to calculate the present value of our future lease obligations. The incremental borrowing rate represents the rate of interest we would have to pay on a collateralized borrowing, for an amount equal to the lease payments, over a similar term and in a similar economic environment. The components of lease costs for the fiscal year ended March 30, 2024 and April 1, 2023 were as follows: Fiscal Year Ended March 30, 2024 April 1, 2023 Operating lease costs $ 94,974 $ 91,009 Variable lease costs 707 1,113 Total lease costs $ 95,681 $ 92,122 We do not have sublease income and do not recognize lease assets or liabilities for short-term leases, defined as operating leases with initial terms of less than 12 months. Our short-term lease costs were not material for fiscal 2023. Weighted average remaining operating lease term and incremental borrowing rate as of March 30, 2024 and April 1, 2023 were as follows: Fiscal Year Ended March 30, 2024 April 1, 2023 Weighted average remaining lease term (years) 6.9 6.5 Weighted average incremental borrowing rate 9.5% 10.5% As of March 30, 2024, future minimum lease payments under our operating lease liabilities were as follows: Operating leases (1) Within 1 year $ 97,725 2 years 96,824 3 years 88,570 4 years 76,815 5 years 62,726 Thereafter 176,529 Total lease payments $ 599,189 Less amount representing interest (159,973) Total lease liability $ 439,216 Less current lease liability (60,692) Total noncurrent lease liability $ 378,524 ___________________________ (1) |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Mar. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies In connection with insurance policies and other contracts, the Company has outstanding standby letters of credit totaling $3,977 as of March 30, 2024. The Company is subject to ordinary litigation and routine reviews by regulatory bodies that are incidental to its business. The Company has recorded accruals with respect to these matters, where appropriate, which are reflected in the Company's unaudited condensed consolidated financial statements. For some matters, a liability is not probable or the amount cannot be reasonably estimated and therefore an accrual has not been made. No material amounts were accrued at March 30, 2024 or April 1, 2023 pertaining to legal proceedings or other contingencies. Rashon Hayes v. The Container Store, Inc. The Company was named as a defendant in a putative class action and representative action was filed on February 10, 2020 in Santa Clara Superior Court by Rashon Hayes (“Plaintiff”), a former, hourly-paid employee of TCS who was employed from April 2019 to June 2019. The First Amended Complaint was filed on August 3, 2020 and alleges eleven causes of action: (1) unpaid overtime, (2) unpaid meal period premiums, (3) unpaid rest period premiums, (4) unpaid minimum wages, (5) final wages not timely paid, (6) wages not timely paid during employment, (7) non-compliant wage statements, (8) failure to keep requisite payroll records, (9) unreimbursed business expenses, (10) violation of California Business and Professions Code section 17200, and (11) violation of the California Private Attorneys General Act. The lawsuit seeks restitution of unpaid wages for plaintiff and other class members, pre-judgement interest, appointment of class administrator, and attorney's fees and costs. Parties engaged in mediation on February 21, 2024 and reached a preliminary, confidential settlement. Based on information currently available, the Company does not believe that its pending legal matters, either on an individual basis or in the aggregate, will have a material adverse effect on the Company’s consolidated financial statements as a whole. However, litigation and other legal matters involve an element of uncertainty. Adverse decisions and settlements, including any required changes to the Company's business, or other developments in such matters could affect our operating results in future periods or result in a liability or other amounts material to the Company's annual consolidated financial statements. The Company is subject to ordinary litigation and routine reviews by regulatory bodies that are incidental to its business, none of which is expected to have a material adverse effect on the Company’s consolidated financial statements on an individual basis or in the aggregate. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Mar. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements Under U.S. GAAP, the Company is required to a) measure certain assets and liabilities at fair value or b) disclose the fair values of certain assets and liabilities recorded at cost. Accounting standards define fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date. Fair value is calculated assuming the transaction occurs in the principal or most advantageous market for the asset or liability and includes consideration of non-performance risk and credit risk of both parties. Accounting standards pertaining to fair value establish a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value. These tiers include: • Level 1—Valuation inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. • Level 2—Valuation inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3—Valuation inputs are unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are determined using model-based techniques that include option pricing models, discounted cash flow models and similar techniques. As of March 30, 2024 and April 1, 2023, the Company held certain items that are required to be measured at fair value on a recurring basis. These items included the non-qualified retirement plan, which consists of investments purchased by employee contributions to retirement savings accounts. The fair value amount of the non-qualified retirement plan is measured using the net asset value per share practical expedient, and therefore, is not classified in the fair value hierarchy. The Company also considers counterparty credit risk and its own credit risk in its determination of all estimated fair values. The Company has consistently applied these valuation techniques in all periods presented and believes it has obtained the most accurate information available for the types of contracts it holds. The following items are measured at fair value on a recurring basis, subject to the disclosure requirements of ASC 820, Fair Value Measurements, at March 30, 2024 and April 1, 2023: Description Balance Sheet Location March 30, April 1, Assets Nonqualified retirement plan Other current assets $ 4,125 $ 3,743 Total assets $ 4,125 $ 3,743 ___________________________ The fair value of long-term debt was estimated using quoted prices as well as recent transactions for similar types of borrowing arrangements (level 2 valuations). As of March 30, 2024 and April 1, 2023, the estimated fair value of the Company’s long-term debt, including current maturities, was as follows: March 30, April 1, Senior secured term loan facility $ 132,435 $ 153,915 2019 Elfa revolving facilities — 2,423 Obligations under finance leases 634 136 Revolving credit facility 16,000 5,000 Total fair value of debt $ 149,069 $ 161,474 |
Segment reporting
Segment reporting | 12 Months Ended |
Mar. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment reporting | Segment reporting The Company’s reportable segments were determined on the same basis as how management evaluates performance internally by the Chief Operating Decision Maker (“CODM”). The Company has determined that the Chief Executive Officer is the CODM and the Company’s two reportable segments consist of TCS and Elfa. The TCS segment includes the Company’s retail stores, website and call center, as well as in-home services. We operate the C Studio manufacturing facility in Elmhurst, Illinois, which designs and manufactures the Company's premium wood-based custom space product offering. We determined that TCS and C Studio have similar economic characteristics and meet the aggregation criteria set forth in ASC 280, Segment Reporting . Therefore, we have combined these two operating segments into the TCS reportable segment. The Elfa segment includes the manufacturing business that produces elfa ® brand products that are sold domestically exclusively through the TCS segment, as well as on a wholesale basis in approximately 30 countries around the world with a concentration in the Nordic region of Europe. The intersegment sales in the Elfa column represent elfa ® product sales to the TCS segment. These sales and the related gross margin on merchandise recorded in TCS inventory balances at the end of the period are eliminated for consolidation purposes in the Eliminations column. The net sales to third parties in the Elfa column represent sales to customers outside of the United States. The Company has determined that adjusted earnings before interest, tax, depreciation, and amortization (“Adjusted EBITDA”) is the profit or loss measure that the CODM uses to make resource allocation decisions and evaluate segment performance. Adjusted EBITDA assists management in comparing our performance on a consistent basis for purposes of business decision-making by removing the impact of certain items that management believes do not directly reflect our core operations and, therefore, are not included in measuring segment performance. Adjusted EBITDA is calculated in accordance with the Senior Secured Term Loan Facility and the Revolving Credit Facility and we define Adjusted EBITDA as net income (loss) before interest, taxes, depreciation and amortization, certain non-cash items, and other adjustments that we do not consider in our evaluation of ongoing operating performance from period to period. Fiscal Year Ended March 30, 2024 TCS Elfa Eliminations Total Net sales to third parties $ 801,431 $ 46,348 $ — $ 847,779 Intersegment sales — 64,625 (64,625) — Adjusted EBITDA 38,405 9,239 450 48,094 Depreciation and amortization 41,771 2,562 — 44,333 Interest expense, net 20,409 263 — 20,672 Capital expenditures (1) 36,463 3,431 — 39,894 Goodwill — — — — Trade names (1) 123,295 23,154 — 146,449 Assets (1) 858,116 86,526 (8,277) 936,365 Fiscal Year Ended April 1, 2023 TCS Elfa Eliminations Total Net sales to third parties $ 991,379 $ 55,879 $ — $ 1,047,258 Intersegment sales — 70,364 (70,364) — Adjusted EBITDA 106,104 15,546 (6,224) 115,426 Depreciation and amortization 36,357 2,548 — 38,905 Interest expense, net 15,640 531 — 16,171 Capital expenditures (1) 61,185 3,038 — 64,223 Goodwill 23,447 — — 23,447 Trade names (1) 187,048 34,230 — 221,278 Assets (1) 894,512 99,295 (8,633) 985,174 Fiscal Year Ended April 2, 2022 TCS Elfa Eliminations Total Net sales to third parties $ 1,023,193 $ 70,926 $ — $ 1,094,119 Intersegment sales — 60,794 (60,794) — Adjusted EBITDA 141,217 13,114 4,678 159,009 Depreciation and amortization 31,061 3,228 — 34,289 Interest expense, net 12,488 272 — 12,760 Capital expenditures (1) 29,746 3,643 — 33,389 Goodwill 221,159 — — 221,159 Trade names (1) 187,048 37,890 — 224,938 Assets (1) 1,093,447 107,822 (3,692) 1,197,577 ___________________________ (1) Tangible assets and trade names in the Elfa column are located outside of the United States. A reconciliation of Adjusted EBITDA to income before taxes is set forth below: Fiscal Year Ended March 30, April 1, April 2, (Loss) income before taxes $ (125,406) $ (143,766) $ 112,694 Add: Depreciation and amortization 44,333 38,905 34,289 Interest expense, net 20,672 16,171 12,760 Pre-opening costs (a) 2,861 2,006 694 Non-cash lease expense (b) (820) 547 (7,115) Impairment charges (c) 97,279 197,712 — Stock-based compensation (d) 1,870 3,382 4,263 Management transition costs (e) — — 473 Foreign exchange losses (gains) (f) (118) 23 (14) Severance charges (g) 4,125 383 — Elfa restructuring (h) 181 — — Legal settlement (i) 3,117 — — Acquisition-related costs (j) — 63 745 COVID-19 costs (k) — — 203 COVID-19 severance and other costs (l) — — 17 Adjusted EBITDA 48,094 115,426 159,009 ___________________________ (a) Non-capital expenditures associated with opening new stores and relocating stores, including marketing expenses, travel and relocation costs, and training costs. We adjust for these costs to facilitate comparisons of our performance from period to period. (b) Reflects the extent to which our annual GAAP operating lease expense has been above or below our cash operating lease payments. The amount varies depending on the average age of our lease portfolio (weighted for size), as our GAAP operating lease expense on younger leases typically exceeds our cash operating lease payments, while our GAAP operating lease expense on older leases is typically less than our cash operating lease payments. (c) Non-cash trade name impairment charge incurred in the fourth quarter of fiscal 2023, as well as non-cash goodwill impairment charge incurred in the second quarter of fiscal 2023 and in the fourth quarter of fiscal 2022, which we do not consider in our evaluation of ongoing performance. (d) Non-cash charges related to stock-based compensation programs, which vary from period to period depending on volume and vesting timing of awards. We adjust for these charges to facilitate comparisons from period to period. (e) Costs related to the transition of key executives including signing bonus, severance and relocation expenses recorded as selling, general and administrative expenses, which we do not consider in our evaluation of ongoing performance. (f) Realized foreign exchange transactional gains/losses our management does not consider in our evaluation of our ongoing operations. (g) Severance charges associated with the elimination of certain positions recorded in other expenses in fiscal 2023 and fiscal 2022, of which approximately $1,590 remains recorded in accrued liabilities on the consolidated balance sheet as of March 30, 2024, and which we do not consider in our evaluation of ongoing performance. (h) Charges associated with the close-down of Elfa segment sales operations in Poland in fiscal 2023, which we do not consider in our evaluation of ongoing performance. (i) The Company incurred costs associated with a legal settlement inclusive of legal fees in fiscal 2023 recorded in other expenses, which we do not consider in our evaluation of ongoing performance. (j) Includes acquisition and legal costs incurred in fiscal 2022 and fiscal 2021 associated with the acquisition of C Studio on December 30, 2021, all of which are recorded as selling, general and administrative expenses, which we do not consider in our evaluation of ongoing performance. (k) Includes incremental costs attributable to the COVID-19 pandemic, such as sanitization costs in fiscal 2021, and are recorded as selling, general and administrative expenses which we do not consider in our evaluation of ongoing performance. (l) COVID-19 severance and other credits/costs include amounts our management does not consider in our evaluation of our ongoing operations. The following table shows sales by merchandise category as a percentage of total net sales for fiscal 2023, fiscal 2022, and fiscal 2021: Fiscal Year Ended March 30, April 1, April 2, Custom Spaces (1) 41 % 39 % 38 % Kitchen and Trash 16 % 17 % 17 % Closets 13 % 13 % 14 % Storage and Shelving 13 % 13 % 14 % Office and Hooks 7 % 8 % 7 % Bath, Travel, Laundry 6 % 6 % 6 % Gift Packaging, Seasonal, Impulse 3 % 3 % 3 % Other 1 % 1 % 1 % Total 100 % 100 % 100 % ___________________________ (1) Custom Spaces includes metal-based and wood-based custom space products and in-home installation services and Elfa segment sales to third parties. Starting in fiscal 2022, the closet lifestyle department products sold by the TCS segment are now included in the remaining general merchandise categories versus prior inclusion in Custom Spaces. |
Net (loss) income per common sh
Net (loss) income per common share | 12 Months Ended |
Mar. 30, 2024 | |
Earnings Per Share [Abstract] | |
Net (loss) income per common share | Net (loss) income per common share Basic net (loss) income per common share is computed as net (loss) income divided by the weighted-average number of common shares outstanding for the period. Diluted net (loss) income per share is computed as net (loss) income divided by the weighted-average number of common shares outstanding for the period plus common stock equivalents consisting of shares subject to stock-based awards with exercise prices less than or equal to the average market price of the Company’s common stock for the period, to the extent their inclusion would be dilutive. Potential dilutive securities are excluded from the computation of diluted net (loss) income per share if their effect is anti-dilutive. The following is a reconciliation of net (loss) income and the number of shares used in the basic and diluted net (loss) income per common share calculations: Fiscal Year Ended March 30, April 1, April 2, Numerator: Net (loss) income $ (103,287) $ (158,856) $ 81,718 Denominator: Weighted-average common shares — basic 49,476,871 49,539,875 49,447,612 Nonvested restricted stock awards and other dilutive securities — — 846,506 Weighted-average common shares — diluted 49,476,871 49,539,875 50,294,118 Net (loss) income per common share — basic $ (2.09) $ (3.21) $ 1.65 Net (loss) income per common share — diluted $ (2.09) $ (3.21) $ 1.62 Antidilutive securities not included: Stock options outstanding 1,129,777 1,534,774 1,687,508 Nonvested restricted stock awards 605,606 631,025 140,826 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent to the fiscal year ended March 30, 2024, the Company was notified by the New York Stock Exchange (the “NYSE”) that it is not in compliance with Section 802.01C of the NYSE Listed Company Manual because the average closing price of the Company’s common stock was less than $1.00 over a consecutive 30 trading-day period. The Company has notified the NYSE that it intends to cure the stock price deficiency and to return to compliance with the NYSE continued listing standard. Subsequent to the fiscal year ended March 30, 2024, the Company has drawn approximately $30,000 on the Revolving Credit Facility. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Apr. 02, 2022 | |
Pay vs Performance Disclosure | |||
Net income (loss) | $ (103,287) | $ (158,856) | $ 81,718 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Nature of business and summar_2
Nature of business and summary of significant accounting policies (Policies) | 12 Months Ended |
Mar. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Basis of presentation |
Basis of consolidation | Basis of consolidation The consolidated financial statements include our accounts and those of the Company’s wholly owned subsidiaries. The Company eliminates all significant intercompany balances and transactions, including intercompany profits, in consolidation. |
Fiscal year | Fiscal year The Company follows a 4-4-5 fiscal calendar, whereby each fiscal quarter consists of thirteen weeks grouped into two four-week “months” and one five-week “month”, and its fiscal year ends on the Saturday closest to March 31 st . Elfa’s fiscal year ends on the last day of the calendar month of March. All references to “fiscal 2024” herein represent the results of the 52-week fiscal year ending March 29, |
Management estimates | Management estimates The preparation of the Company’s consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results could differ from those estimates. Significant accounting judgments and estimates include fair value estimates for operating lease assets and liabilities, indefinite-lived intangible assets, obsolescence and shrink reserve, assessments of long-lived asset impairments, gift card breakage, and assessment of valuation allowances on deferred tax assets. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. Based on the Company’s current financial projections, management believes the Company will maintain compliance with its financial covenants and the Company’s existing cash, projected operating cash flows and available borrowing capacity under its Revolving Credit Facility are adequate to meet its operating needs, liabilities and commitments over the next twelve months from the issuance of the accompanying consolidated financial statements. However, forecasts and projections are subject to risks and uncertainties about our operations, industry, financial condition, performance, operating results and liquidity. If future actual results differ from current financial projections, we could fail to comply with these financial covenants in future periods. Compliance with the financial covenants in the Company’s Senior Secured Term Loan Facility (as defined in Note 4, Long-term debt and revolving lines of credit) is measured quarterly and failure to meet the covenant requirements would constitute an event of default. As of March 30, 2024, the Company was in compliance with the financial covenants in the Senior Secured Term Loan Facility. |
Revenue recognition | Revenue recognition Revenue from sales related to retail operations is recognized when the merchandise is delivered to the customer at the point of sale. Revenue from sales that are shipped or delivered directly to customers is recognized upon estimated delivery to the customer and includes applicable shipping or delivery revenue. Revenue from sales that are installed is recognized upon completion of the installation service to the customer and includes applicable installation revenue. Revenue from sales of other services is recognized upon the completion of the service. Revenue from sales related to manufacturing operations is recorded upon shipment. Sales are recorded net of sales taxes collected from customers. A sales return allowance is recorded for estimated returns of merchandise subsequent to the balance sheet date that relate to sales prior to the balance sheet date. The returns allowance is based on historical return patterns and reduces sales and cost of sales, accordingly. Merchandise exchanges of similar product and price are not considered merchandise returns and, therefore, are excluded when calculating the sales returns allowance. We have not made any material changes to our assumptions used to recognize revenue during the periods presented. Contract Balances |
Gift cards and merchandise credits | Gift cards and merchandise credits |
Cost of sales | Cost of sales Cost of sales related to retail operations includes the purchase cost of inventory sold (net of vendor rebates), in-bound freight, as well as inventory loss reserves. Costs incurred to ship or deliver merchandise to customers, as well as direct installation and organization services costs, are also included in cost of sales. Cost of sales from manufacturing operations includes costs associated with production, including materials, wages, other variable production costs, and other applicable manufacturing overhead. |
Leases | Leases We recognize a lease liability upon lease commencement, measured at the present value of the fixed future minimum lease payments over the lease term. We have elected the practical expedient to not separate lease and non-lease components. Therefore, lease payments included in the measurement of the lease liability include all fixed payments in the lease arrangement. We record a right-of-use asset for an amount equal to the lease liability, increased for any prepaid lease costs and initial direct costs and reduced by any lease incentives. We remeasure the lease liability and right-of-use asset when a change to our future minimum lease payments occurs. Lease expense on operating leases is recorded on a straight-line basis over the term of the lease and is recorded in selling, general and administrative expenses (“SG&A”). We conduct all of our U.S. operations from leased facilities that include our support center, distribution centers, manufacturing facilities, and 102 store locations. The support center, distribution centers, manufacturing facilities, and stores are leased under operating leases that generally expire over the next 1 to 15 years. We also lease computer hardware under operating leases that generally expire over the next few years. In most cases, management expects that in the normal course of business, leases will be renewed or replaced by other leases. The Company also has finance leases at our Elfa segment which are immaterial. Lease expense on operating leases is recorded on a straight-line basis over the term of the lease, commencing on the date the Company takes possession of the leased property and is recorded in selling, general and administrative expenses ("SG&A"). We consider lease payments that cannot be predicted with reasonable certainty upon lease commencement to be variable lease payments, which are recorded as incurred each period and are excluded from our calculation of lease liabilities. Our variable lease payments include lease payments that are based on a percentage of sales. Upon lease commencement, we recognize the lease liability measured at the present value of the fixed future minimum lease payments. We have elected the practical expedient to not separate lease and non-lease components. Therefore, lease payments included in the measurement of the lease liability include all fixed payments in the lease arrangement. We record a right-of-use asset for an amount equal to the lease liability, increased for any prepaid lease costs and initial direct costs and reduced by any lease incentives. We remeasure the lease liability and right-of-use asset when a change to our future minimum lease payments occurs. Key assumptions and judgments included in the determination of the lease liability include the discount rate applied to present value of the future lease payments and the exercise of renewal options. Many of our leases contain renewal options. The option periods are generally not included in the lease term used to measure our lease liabilities and right-of-use assets upon commencement as exercise of the options is not reasonably certain. We remeasure the lease liability and right-of-use asset when we are reasonably certain to exercise a renewal option. Discount Rate Our leases do not provide information about the rate implicit in the lease. Therefore, we utilize an incremental borrowing rate to calculate the present value of our future lease obligations. The incremental borrowing rate represents the rate of interest we would have to pay on a collateralized borrowing, for an amount equal to the lease payments, over a similar term and in a similar economic environment. |
Advertising | Advertising |
Pre-opening costs | Pre-opening costs Non-capital expenditures associated with opening new stores and distribution centers and relocating stores, including marketing expenses, travel and relocation costs are expensed as incurred and are included in pre-opening costs in the consolidated statement of operations. |
Income taxes | Income taxes We account for income taxes utilizing ASC 740, Income Taxes . ASC 740 requires an asset and liability approach, which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. We recognize interest and penalties related to unrecognized tax benefits in income tax expense. There were no uncertain tax positions requiring an accrual as of March 30, 2024 and April 1, 2023. Valuation allowances are established against deferred tax assets when it is more-likely-than-not that the realization of those deferred tax assets will not occur. Valuation allowances are released as positive evidence of future taxable income sufficient to realize the underlying deferred tax assets becomes available. Deferred tax assets and liabilities are measured using the enacted tax rates in effect in the years when those temporary differences are expected to reverse. The effect on deferred taxes from a change in the tax rate is recognized through continuing operations in the period that includes the enactment of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. We operate in certain jurisdictions outside the United States. ASC 740-30 provides that the undistributed earnings of a foreign subsidiary be accounted for as a temporary difference under the presumption that all undistributed earnings will be distributed to the parent company as a dividend. Sufficient evidence of the intent to permanently reinvest the earnings in the jurisdiction where earned precludes a company from recording the temporary difference. For purposes of ASC 740-30, the Company does not consider the earnings subject to the transition tax and global intangible low-taxed income (“GILTI”) under the Tax Cuts and Jobs Act (the “Tax Act”) permanently reinvested. All other earnings are considered permanently reinvested. The Company has elected an accounting policy to recognize GILTI as a period cost when incurred. Judgment is required in determining the provision for income and other taxes and related accruals, and deferred tax assets and liabilities. In the ordinary course of business, there are transactions and calculations where the ultimate tax outcome is uncertain. Additionally, the Company's various tax returns are subject to audit by various tax authorities. Although the Company believes that its estimates are reasonable, actual results could differ from these estimates. The Company has recorded deferred tax assets and liabilities based upon estimates of their realizable value with such estimates based upon likely future tax consequences. In assessing the need for a valuation allowance, the Company considers both positive and negative evidence related to the likelihood of realization of the deferred tax assets. If, based on the weight of available evidence, it is more-likely-than-not that a deferred tax asset will not be realized, the Company records a valuation allowance. The Company files income tax returns in the U.S. federal jurisdiction, various states and foreign jurisdictions. The Company is currently subject to U.S. federal income tax examinations for the year ended March 30, 2019 and forward. With respect to state and local jurisdictions and countries outside of the United States, the Company and subsidiaries are typically subject to examination for three to six years after the income tax returns have been filed. We operate in certain jurisdictions outside the United States. ASC 740-30 provides that the undistributed earnings of a foreign subsidiary be accounted for as a temporary difference under the presumption that all undistributed earnings will be distributed to the parent company as a dividend. Sufficient evidence of the intent to permanently reinvest the earnings in the jurisdiction where earned precludes a company from recording the temporary difference. For purposes of ASC 740-30, the Company does not consider the earnings subject to the transition tax and GILTI under the Tax Act permanently reinvested. All other earnings are considered permanently reinvested. The Company has elected an accounting policy to recognize GILTI as a period cost when incurred. |
Stock-based compensation | Stock-based compensation The Company accounts for stock-based compensation in accordance with ASC 718, Compensation-Stock Compensation , which requires the fair value of stock-based payments to be recognized in the consolidated financial statements as compensation expense over the requisite service period. For time-based awards, compensation expense is recognized on a straight-line basis, net of estimated forfeitures, over the requisite service period for awards that actually vest. For performance-based awards, compensation expense is estimated based on achievement of the performance condition and is recognized using the accelerated attribution method over the requisite service period for awards that actually vest. Stock-based compensation expense is recorded in the stock-based compensation line in the consolidated statements of operations. ASC 718 also provides guidance for determining whether certain financial instruments awarded in share-based payment transactions are liabilities. The guidance requires that instruments that include conditions other than service, performance or market conditions that affect their fair value, exercisability or vesting be classified as a liability and be remeasured at fair value at each fiscal period. Restricted Stock Awards The fair value of each restricted stock award is determined based on the closing price of the Company’s common stock as reported on The New York Stock Exchange on the grant date. Stock Options The Board determines the exercise price of stock options based on the closing price of the Company’s common stock as reported on The New York Stock Exchange on the grant date. The Company estimates the fair value of each stock option grant on the date of grant based upon the Black-Scholes option-pricing model. This model requires various significant judgmental assumptions in order to derive a final fair value determination for each type of award including: • Expected Term—The expected term of the options represents the period of time between the grant date of the options and the date the options are either exercised or canceled, including an estimate of options still outstanding. For future grants, we would expect to utilize TCS historical data to calculate the expected term. • Expected Volatility—The expected volatility incorporates historical and implied volatility of comparable public companies for a period approximating the expected term. For future grants, we would expect to utilize the TCS stock price volatility. • Expected Dividend Yield—The expected dividend yield is based on the Company’s expectation of not paying dividends on its common stock for the foreseeable future. • |
Accounts receivable | Accounts receivable |
Inventories | Inventories Inventories at retail stores and distribution centers are comprised of finished goods and are valued at the lower of cost or estimated net realizable value, with cost determined on a weighted-average cost method including associated in-bound freight costs. Manufacturing inventories are comprised of raw materials, work in process, and finished goods and are valued on a first-in, first out basis using full absorption accounting which includes material, labor, other variable costs, and other applicable manufacturing overhead. To determine if the value of inventory is recoverable at cost, we consider current and anticipated demand, customer preference and the merchandise age. The significant estimates used in inventory valuation are obsolescence (including excess and slow-moving inventory) and estimates of inventory shrinkage. We adjust our inventory for obsolescence based on historical trends, aging reports, specific identification and our estimates of future retail sales prices. Reserves for shrinkage are estimated and recorded throughout the period as a percentage of cost of sales based on historical shrinkage results and current inventory levels. Actual shrinkage is recorded throughout the year based upon periodic cycle counts. Actual inventory shrinkage can vary from estimates due to factors including the mix of our inventory and execution against loss prevention initiatives in our stores and distribution center. |
Property and equipment | Property and equipment Property and equipment are recorded at cost less accumulated depreciation. Significant additions and improvements are capitalized, and expenditures for maintenance and repairs are expensed. Gains and losses on the disposition of property and equipment are recognized in the period incurred. Depreciation, including amortization of assets recorded under finance lease obligations, is provided using the straight-line method over the estimated useful lives of depreciable assets as follows: Buildings 30 years Furniture, fixtures, and equipment 3 to 10 years Computer software 2 to 5 years Leasehold improvements Shorter of useful life or lease term Finance leases Shorter of useful life or lease term |
Long-lived assets | Long-lived assets Long-lived assets, such as property and equipment, lease right-of-use assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset, a product recall or an adverse action or assessment by a regulator. If the sum of the estimated undiscounted future cash flows related to the asset is less than the carrying amount, we recognize a loss equal to the difference between the carrying amount and the fair value, usually determined by the estimated discounted cash flow analysis of the asset. For our TCS segment (see Note 14), we generally evaluate long-lived tangible assets at a store level, or at the lowest level at which independent cash flows can be identified. We evaluate corporate assets or other long-lived assets that are not store-specific at the consolidated level. For our Elfa segment (see Note 14), we evaluate long-lived tangible assets at the segment level. Since there is typically no active market for our long-lived tangible assets, we estimate fair values based on the expected future cash flows. We estimate future cash flows based on store-level historical results, current trends, and operating and cash flow projections. Our estimates are subject to uncertainty and may be affected by a number of factors outside our control, including general economic conditions, and the competitive environment. While we believe our estimates and judgments about future cash flows are reasonable, future impairment charges may be required if the expected cash flow estimates, as projected, do not occur or if events change requiring us to revise our estimates. |
Foreign currency forward contracts | Foreign currency forward contracts We account for foreign currency forward contracts in accordance with ASC 815, Derivatives and Hedging . In the TCS segment, we may utilize foreign currency forward contracts in Swedish krona to stabilize our retail gross margins and to protect our domestic operations from downward currency exposure by hedging purchases of inventory from our wholly owned subsidiary, Elfa. In the Elfa segment, we may utilize foreign currency forward contracts to hedge purchases of raw materials that are transacted in currencies other than Swedish krona, which is the functional currency of Elfa. Generally, the Company’s foreign currency forward contracts have terms from 1 to 12 months and require the Company to exchange currencies at agreed-upon rates at settlement. The Company does not hold or enter into financial instruments for trading or speculative purposes. The Company records all foreign currency forward contracts on its consolidated balance sheet at fair value. The Company records its foreign currency forward contracts on a gross basis. Forward contracts not designated as hedges are adjusted to fair value through income as SG&A. The Company accounts for its foreign currency hedge instruments as cash flow hedges, as defined. Changes in the fair value of the foreign currency hedge instruments that are considered to be effective, as defined, are recorded in other comprehensive income (loss) until the hedged item (inventory) is sold to the customer, at which time the deferred gain or loss is recognized through cost of sales. Any portion of a change in the foreign currency hedge instrument’s fair value that is considered to be ineffective, as defined, or that the Company has elected to exclude from its measurement of effectiveness, is immediately recorded in earnings as cost of sales. The Company’s international operations and purchases of its significant product lines from foreign suppliers are subject to certain opportunities and risks, including foreign currency fluctuations. In the TCS segment, we utilize foreign currency forward contracts in Swedish krona to stabilize our retail gross margins and to protect our domestic operations from downward currency exposure by hedging purchases of inventory from our wholly owned subsidiary, Elfa. Forward contracts in the TCS segment are designated as cash flow hedges, as defined by ASC 815. In the Elfa segment, we utilize foreign currency forward contracts to hedge purchases, primarily of raw materials, that are transacted in currencies other than Swedish krona, which is the functional currency of Elfa. Forward contracts in the Elfa segment are economic hedges, and are not designated as cash flow hedges as defined by ASC 815. The counterparties to the contracts consist of a limited number of major domestic and international financial institutions. The Company does not hold or enter into financial instruments for trading or speculative purposes. The Company records its foreign currency forward contracts on a gross basis and generally does not require collateral from these counterparties because it does not expect any losses from credit exposure. The changes in fair value of the Company’s foreign currency hedge instruments that qualify as cash flow hedges and are included in accumulated other comprehensive income (loss), net of taxes, are presented in Note 9 of these financial statements. |
Self-insured liabilities | Self-insured liabilities We are primarily self-insured for workers’ compensation, employee health benefits and general liability claims. We record self-insurance liabilities based on claims filed, including the development of those claims, and an estimate of claims incurred but not yet reported. Factors affecting these estimates include future inflation rates, changes in severity, benefit level changes, medical costs and claim settlement patterns. Should a different amount of claims occur compared to what was estimated, or costs of the claims increase or decrease beyond what was anticipated, reserves may need to be adjusted accordingly. Self-insurance reserves for employee health benefits, workers’ compensation and general liability claims are recorded in the accrued liabilities line item of the consolidated balance sheet and were collectively $2,359 and $2,450 as of March 30, 2024 and April 1, 2023, respectively. |
Goodwill | Goodwill We evaluate goodwill annually to determine whether it is impaired. Goodwill is also tested between annual impairment tests if an event occurs or circumstances change that would indicate that the fair value of a reporting unit is less than its carrying amount. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset. If an impairment indicator exists, we test goodwill for recoverability. When performing a quantitative test for impairment, we compare the fair value of the reporting unit to its carrying amount. If the fair value of the reporting unit exceeds the carrying amount of the net assets assigned to that unit, goodwill is considered not impaired and we are not required to perform further testing. If the carrying amount of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then we would record an impairment loss equal to the difference. We measure the fair value of the operating segment using a combination of the income approach and market approach to determine the fair value of the Company to be compared against the carrying value of net assets, both level 3 valuations (as defined in Note 13). The determination of fair value requires assumptions and estimates of many critical factors, including among others, our nature and our history, financial and economic conditions affecting us, our industry and the general economy, past results, our current operations and future prospects, sales of similar businesses or capital stock of publicly held similar businesses, as well as prices, terms and conditions affecting past sales of similar businesses. Forecasts of future operations are based, in part, on operating results and management’s expectations as to future market conditions. These types of analyses contain uncertainties because they require management to make assumptions and to apply judgments to estimate industry economic factors and the profitability of future business strategies. If actual results are not consistent with our estimates and assumptions, we may be exposed to future impairment losses that could be material. See Note 2 for more information on our goodwill activity and impairment assessments performed. |
Trade names | Trade names We annually evaluate whether our trade names continue to have an indefinite life. Trade names are reviewed for impairment annually on the first day of the fourth fiscal quarter and may be reviewed more frequently if indicators of impairment are present. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset, a product recall or an adverse action or assessment by a regulator. When performing a quantitative test, the impairment review is performed by comparing the carrying amount to the estimated fair value, determined using a discounted cash flow methodology, a level 3 valuation (as defined in Note 13). If the recorded carrying amount of the trade name exceeds its estimated fair value, an impairment charge is recorded to write the trade name down to its estimated fair value. Factors used in the valuation of intangible assets with indefinite lives include, but are not limited to, future revenue growth assumptions, estimated market royalty rates that could be derived from the licensing of our trade names to third parties, and a rate used to discount the estimated royalty cash flow projections. The valuation of trade names requires assumptions and estimates of many critical factors, which are consistent with the factors discussed under “Goodwill” above. Forecasts of future operations are based, in part, on operating results and management’s expectations as to future market conditions. These types of analyses contain uncertainties because they require management to make assumptions and to apply judgments to estimate industry economic factors and the profitability of future business strategies. If actual results are not consistent with our estimates and assumptions, we may be exposed to future impairment losses that could be material. See Note 2 for more information on our trade names activity and impairment assessments performed. |
Foreign currency | Foreign currency The Company operates foreign subsidiaries in the following countries: Sweden, Norway, Finland, Denmark, Germany and Poland. The functional currency of the Company’s foreign operations is the applicable country’s currency. All assets and liabilities of foreign subsidiaries and affiliates are translated at year-end rates of exchange. Revenues and expenses of foreign subsidiaries and affiliates are translated at average rates of exchange for the year. Unrealized gains and losses on translation are reported as cumulative translation adjustments through other comprehensive income (loss). The functional currency for the Company’s wholly owned subsidiary, Elfa, is the Swedish krona. During fiscal 2023, the rate of exchange from U.S. dollar to Swedish krona increased from 10.3 to 10.7. The carrying amounts of assets related to Elfa and subject to currency fluctuation were $99,171 and $110,215 as of March 30, 2024 and April 1, 2023, respectively. Foreign currency realized gains of $118, realized losses of $23, and realized gains of $14, are included in SG&A in the consolidated statements of operations in fiscal 2023, fiscal 2022, and fiscal 2021, respectively. |
Recent accounting pronouncements | Recent accounting pronouncements In November 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which is intended to improve the disclosures about a public entity’s reportable segments and address requests from investors for additional, more detailed information about a reportable segment’s expenses. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. A public entity should apply the amendments in this update retrospectively to all prior periods presented in the financial statements. We do not anticipate that the adoption of this update will result in a material impact to our financial position, results of operations or cash flows. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which is intended to address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information, as well certain other amendments to improve the effectiveness of income tax disclosures. This ASU is effective for fiscal years beginning after December 15, 2024, for all public business entities. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments in this update should be applied on a prospective basis, however, retrospective application is permitted. We do not anticipate that the adoption of this update will result in a material impact to our financial position, results of operations or cash flows. |
Goodwill and trade names | The estimated goodwill and trade name fair values are computed using estimates as of the measurement date, which is defined as the first day of the fiscal fourth quarter or as of an interim assessment date. The Company makes estimates and assumptions about sales, gross margins, selling, general and administrative percentages and profit margins, based on budgets and forecasts, business plans, economic projections, anticipated future cash flows, and marketplace data. Assumptions are also made for varying perpetual growth rates for periods beyond the long-term business plan period and our estimated weighted average cost of capital. There are inherent uncertainties related to these factors and management’s judgment in applying these factors. Another estimate using different, but still reasonable, assumptions could produce different results. As there are numerous assumptions and estimations utilized to derive the estimated enterprise fair value of each reporting unit, it is possible that actual results may differ from estimated results requiring future impairment charges. |
Fair value measurements | As of March 30, 2024 and April 1, 2023, the Company held certain items that are required to be measured at fair value on a recurring basis. These items included the non-qualified retirement plan, which consists of investments purchased by employee contributions to retirement savings accounts. The fair value amount of the non-qualified retirement plan is measured using the net asset value per share practical expedient, and therefore, is not classified in the fair value hierarchy. The Company also considers counterparty credit risk and its own credit risk in its determination of all estimated fair values. The Company has consistently applied these valuation techniques in all periods presented and believes it has obtained the most accurate information available for the types of contracts it holds. |
Segment reporting | The Company’s reportable segments were determined on the same basis as how management evaluates performance internally by the Chief Operating Decision Maker (“CODM”). The Company has determined that the Chief Executive Officer is the CODM and the Company’s two reportable segments consist of TCS and Elfa. The TCS segment includes the Company’s retail stores, website and call center, as well as in-home services. We operate the C Studio manufacturing facility in Elmhurst, Illinois, which designs and manufactures the Company's premium wood-based custom space product offering. We determined that TCS and C Studio have similar economic characteristics and meet the aggregation criteria set forth in ASC 280, Segment Reporting . Therefore, we have combined these two operating segments into the TCS reportable segment. The Elfa segment includes the manufacturing business that produces elfa ® brand products that are sold domestically exclusively through the TCS segment, as well as on a wholesale basis in approximately 30 countries around the world with a concentration in the Nordic region of Europe. The intersegment sales in the Elfa column represent elfa ® product sales to the TCS segment. These sales and the related gross margin on merchandise recorded in TCS inventory balances at the end of the period are eliminated for consolidation purposes in the Eliminations column. The net sales to third parties in the Elfa column represent sales to customers outside of the United States. The Company has determined that adjusted earnings before interest, tax, depreciation, and amortization (“Adjusted EBITDA”) is the profit or loss measure that the CODM uses to make resource allocation decisions and evaluate segment performance. Adjusted EBITDA assists management in comparing our performance on a consistent basis for purposes of business decision-making by removing the impact of certain items that management believes do not directly reflect our core operations and, therefore, are not included in measuring segment performance. Adjusted EBITDA is calculated in accordance with the Senior Secured Term Loan Facility and the Revolving Credit Facility and we define Adjusted EBITDA as net income (loss) before interest, taxes, depreciation and amortization, certain non-cash items, and other adjustments that we do not consider in our evaluation of ongoing operating performance from period to period. |
Net (loss) income per common share | Basic net (loss) income per common share is computed as net (loss) income divided by the weighted-average number of common shares outstanding for the period. Diluted net (loss) income per share is computed as net (loss) income divided by the weighted-average number of common shares outstanding for the period plus common stock equivalents consisting of shares subject to stock-based awards with exercise prices less than or equal to the average market price of the Company’s common stock for the period, to the extent their inclusion would be dilutive. Potential dilutive securities are excluded from the computation of diluted net (loss) income per share if their effect is anti-dilutive. |
Nature of business and summar_3
Nature of business and summary of significant accounting policies (Tables) | 12 Months Ended |
Mar. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Estimated Useful Lives of Depreciable Assets | Depreciation, including amortization of assets recorded under finance lease obligations, is provided using the straight-line method over the estimated useful lives of depreciable assets as follows: Buildings 30 years Furniture, fixtures, and equipment 3 to 10 years Computer software 2 to 5 years Leasehold improvements Shorter of useful life or lease term Finance leases Shorter of useful life or lease term |
Goodwill and trade names (Table
Goodwill and trade names (Tables) | 12 Months Ended |
Mar. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Amount of Goodwill and Trade Names | The changes in the carrying amounts of goodwill and trade names were as follows in fiscal 2023 and fiscal 2022: Goodwill Trade names Balance at April 2, 2022 Gross balance 428,811 256,472 Accumulated impairment charges (207,652) (31,534) Total, net $ 221,159 $ 224,938 Foreign currency translation adjustments — (3,660) Balance at April 1, 2023 Gross balance 428,811 252,812 Fiscal 2022 impairment charges (197,712) — Accumulated impairment charges (207,652) (31,534) Total, net $ 23,447 $ 221,278 Foreign currency translation adjustments — (997) Balance at March 30, 2024 Gross balance 428,811 251,815 Fiscal 2023 impairment charges (23,447) (73,832) Accumulated impairment charges (405,364) (31,534) Total, net $ — $ 146,449 |
Detail of certain balance she_2
Detail of certain balance sheet accounts (Tables) | 12 Months Ended |
Mar. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Detail of Certain Balance Sheet Accounts | March 30, April 1, Accounts receivable, net: Trade receivables, net $ 13,943 $ 18,269 Credit card receivables 4,859 6,165 Other receivables 3,208 1,436 $ 22,010 $ 25,870 Inventory: Finished goods $ 150,493 $ 160,108 Raw materials 6,869 9,289 Work in progress 1,072 1,240 $ 158,434 $ 170,637 Property and equipment, net: Land and buildings $ 15,756 $ 15,693 Furniture and fixtures 87,365 84,359 Machinery and equipment 114,684 110,908 Computer software and equipment 180,332 163,943 Leasehold improvements 182,515 171,522 Construction in progress 10,111 10,363 Other 1,200 646 591,963 557,434 Less accumulated depreciation and amortization (436,561) (398,732) $ 155,402 $ 158,702 Accrued liabilities: Accrued payroll, benefits and bonuses $ 20,590 $ 24,224 Unearned revenue 14,385 15,700 Accrued transaction and property tax 12,272 14,072 Gift cards and store credits outstanding 13,365 13,002 Accrued sales returns 1,974 3,366 Accrued interest 215 189 Other accrued liabilities 7,275 4,120 $ 70,076 $ 74,673 |
Long-term debt and revolving _2
Long-term debt and revolving lines of credit (Tables) | 12 Months Ended |
Mar. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt and Revolving Lines of Credit | Long-term debt and revolving lines of credit consist of the following: March 30, April 1, Senior secured term loan facility $ 163,500 $ 165,500 2019 Elfa revolving facilities — 2,423 Obligations under finance leases 634 136 Revolving credit facility 16,000 5,000 Total debt 180,134 173,059 Less current portion (2,166) (4,486) Less deferred financing costs (1) (3,357) (5,188) Total long-term debt $ 174,611 $ 163,385 ___________________________ (1) Represents deferred financing costs related to our Senior Secured Term Loan Facility, which are presented net of long-term debt in the consolidated balance sheet. |
Schedule of Total Revolving Lines of Credit and Debt Maturities | Scheduled total revolving lines of credit and debt maturities for the fiscal years subsequent to March 30, 2024, are as follows: Within 1 year $ 2,196 2 years 177,674 3 years 135 4 years 129 5 years — Thereafter — $ 180,134 |
Schedule of Amortization Expense of Deferred Financing Costs | The following is a schedule of amortization expense of deferred financing costs: Senior Secured Revolving Total Within 1 year $ 1,751 $ 51 $ 1,802 2 years 1,606 47 1,653 3 years — — — 4 years — — — 5 years — — — Thereafter — — — $ 3,357 $ 98 $ 3,455 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Mar. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Components of the Provision for Income Taxes | Components of the provision for income taxes are as follows: Fiscal Year Ended March 30, April 1, April 2, (Loss) income before income taxes: U.S. $ (122,030) $ (149,604) $ 98,389 Foreign (3,376) 5,838 14,305 $ (125,406) $ (143,766) $ 112,694 Current Federal $ 1,459 $ 10,942 $ 18,510 State 313 3,758 6,194 Foreign 860 741 2,651 Total current provision 2,632 15,441 27,355 Deferred Federal (17,779) (490) 2,998 State (5,365) (228) 326 Foreign (1,607) 367 297 Total deferred (benefit) provision (24,751) (351) 3,621 Total (benefit) provision for income taxes $ (22,119) $ 15,090 $ 30,976 |
Effective Income Tax Rate Reconciliation | Differences between the actual provision for income taxes and the amounts computed by applying the statutory federal tax rate to income before taxes are as follows: Fiscal Year Ended March 30, April 1, April 2, (Benefit) provision computed at federal statutory rate $ (26,335) $ (30,191) $ 23,666 Permanent differences 7,960 42,283 1,460 Change in valuation allowance (46) 422 80 State income taxes, net of federal benefit (3,991) 2,810 5,189 Effect of foreign income taxes (5) (31) (75) Other, net 298 (203) 656 $ (22,119) $ 15,090 $ 30,976 |
Components of Deferred Tax Assets and Liabilities | Components of deferred tax assets and liabilities as of March 30, 2024 and April 1, 2023, are as follows: March 30, April 1, Deferred tax assets: Inventory $ 2,602 $ 2,422 Loss and credit carryforwards 5,938 5,619 Stock-based compensation 797 4,129 Accrued liabilities 7,209 4,346 Operating lease liabilities 112,644 96,232 Capital assets 54 73 Other 742 31 129,986 112,852 Valuation allowance (5,301) (5,402) Total deferred tax assets 124,685 107,450 Deferred tax liabilities: Intangibles (38,249) (56,990) Operating lease assets (105,005) (88,325) Capital assets (5,223) (10,905) Total deferred tax liabilities (148,477) (156,220) Net deferred tax liabilities $ (23,792) $ (48,770) |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 12 Months Ended |
Mar. 30, 2024 | |
Retirement Benefits [Abstract] | |
Reconciliation of the Changes in the Defined Benefit Obligations, Funded Status and Related Weighted-Average Assumptions | The following is a reconciliation of the changes in the defined benefit obligations, a statement of funded status, and the related weighted-average assumptions: March 30, April 1, Change in benefit obligation: Projected benefit obligation, beginning of year $ 3,402 $ 4,553 Service cost — — Interest cost 136 94 Benefits paid (181) (169) Actuarial loss (gain) 154 (634) Exchange rate gains (109) (442) Projected benefit obligation, end of year 3,402 3,402 Fair value of plan assets, end of year — — Underfunded status, end of year $ (3,402) $ (3,402) Discount rate 3.7 % 4.2 % Rate of pay increases — % — % |
Components of Net Periodic Benefit Cost | The following table provides the components of net periodic benefit cost for fiscal years 2023, 2022, and 2021: Fiscal Year Ended March 30, April 1, April 2, Components of net periodic benefit cost: Defined benefit plans: Service cost $ — $ — $ 19 Interest cost 136 94 101 Curtailment gain — — (669) Amortization of unrecognized net loss 75 86 118 Net periodic benefit cost for defined benefit plan 211 180 (431) Defined contribution plans 1,812 1,803 1,824 Total net periodic benefit cost $ 2,023 $ 1,983 $ 1,393 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 12 Months Ended |
Mar. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Awards Granted | The following table summarizes the Company's restricted stock award grants during fiscal 2023, fiscal 2022, and fiscal 2021. Grant Date Total Grant Date Number of Time-Based Number of Performance- Number of June 1, 2021 335,719 $ 13.22 98,343 3 years 237,376 (1) 3 years 237,376 September 1, 2021 90,040 $ 11.55 90,040 1 year — N/A N/A March 29, 2022 6,408 $ 8.67 6,408 1 year — N/A N/A June 1, 2022 994,681 $ 7.56 234,062 3 years 760,619 (2) 3 years 0 August 31, 2022 153,392 $ 6.78 153,392 1 year — N/A N/A June 1, 2023 1,586,596 $ 2.48 394,729 3 years 1,191,867 (3) 3 years 0 August 30, 2023 146,340 $ 2.34 146,340 1 year — N/A N/A March 26, 2024 20,848 $ 1.08 20,848 1 year — N/A N/A ___________________________ (1) These performance-based restricted stock awards vest based on achievement of fiscal 2021 performance targets and are also subject to time-based vesting requirements. (2) These performance-based restricted stock awards vest based on achievement of fiscal 2022 performance targets and are also subject to time-based vesting requirements. (3) |
Schedule of Restricted Stock Awards Activity | The following table summarizes the Company’s restricted stock awards activity during fiscal 2022 and fiscal 2023: Restricted Stock Weighted Average Nonvested at April 2, 2022 990,773 $ 7.89 Granted 1,148,073 7.45 Vested (412,988) 7.84 Forfeited (877,301) 7.50 Withheld related to net settlement (86,482) 6.22 Nonvested at April 1, 2023 762,075 $ 7.87 Granted 1,753,777 2.17 Vested (426,249) 7.23 Forfeited (1,351,489) 2.45 Withheld related to net settlement (57,984) 6.41 Nonvested at March 30, 2024 680,130 $ 4.39 |
Schedule of Stock Option Activity | The following table summarizes the Company’s stock option activity during fiscal 2023, fiscal 2022, and fiscal 2021: Fiscal Year 2023 2022 2021 Shares Weighted- Weighted- Aggregate Shares Weighted- Weighted- Aggregate Shares Weighted- Weighted- Aggregate Beginning balance 1,713,070 $ 15.74 1,966,465 $ 15.49 2,259,041 $ 15.07 Granted — $ — — $ — — $ — Exercised — $ — (73,594) $ 4.62 (125,777) $ 4.50 Forfeited — $ — — $ — — $ — Expired (1,330,988) $ 18.00 (179,801) $ 17.53 (166,799) $ 18.09 Ending balance 382,082 $ 7.86 2.51 $ — 1,713,070 $ 15.74 1.24 $ — 1,966,465 $ 15.49 2.21 $ 1,287,521 Vested and exercisable at end of year 382,082 $ 7.86 2.51 $ — 1,713,070 $ 15.74 1.24 $ — 1,966,465 $ 15.49 2.21 $ 1,287,521 |
Accumulated other comprehensi_2
Accumulated other comprehensive loss (Tables) | 12 Months Ended |
Mar. 30, 2024 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Components of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss (“AOCL”) consists of changes in our foreign currency hedge contracts, pension liability adjustment, and foreign currency translation. The components of AOCL, net of tax, were as follows for fiscal 2021, 2022 and 2023: Foreign Pension Foreign Total Balance at April 03, 2021 $ 3,174 $ (2,415) $ (19,762) $ (19,003) Other comprehensive (loss) income before reclassifications, net of tax (777) 414 (5,824) (6,187) Amounts reclassified to earnings, net of tax (2,346) 92 — (2,254) Net current period other comprehensive (loss) income (3,123) 506 (5,824) (8,441) Balance at April 2, 2022 $ 51 $ (1,909) $ (25,586) $ (27,444) Other comprehensive (loss) income before reclassifications, net of tax (51) 792 (5,806) (5,065) Amounts reclassified to earnings, net of tax — — — — Net current period other comprehensive (loss) income (51) 792 (5,806) (5,065) Balance at April 1, 2023 $ — $ (1,117) $ (31,392) $ (32,509) Other comprehensive (loss) income before reclassifications, net of tax — (26) (908) (934) Amounts reclassified to earnings, net of tax — — — — Net current period other comprehensive (loss) income — (26) (908) (934) Balance at March 30, 2024 $ — $ (1,143) $ (32,300) $ (33,443) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 30, 2024 | |
Leases [Abstract] | |
Components of Lease Costs | The components of lease costs for the fiscal year ended March 30, 2024 and April 1, 2023 were as follows: Fiscal Year Ended March 30, 2024 April 1, 2023 Operating lease costs $ 94,974 $ 91,009 Variable lease costs 707 1,113 Total lease costs $ 95,681 $ 92,122 |
Schedule of Weighted Average Remaining Operating Lease Term and Incremental Borrowing Rate | Weighted average remaining operating lease term and incremental borrowing rate as of March 30, 2024 and April 1, 2023 were as follows: Fiscal Year Ended March 30, 2024 April 1, 2023 Weighted average remaining lease term (years) 6.9 6.5 Weighted average incremental borrowing rate 9.5% 10.5% |
Schedule of Future Minimum Lease Payments for Operating Lease Liabilities | As of March 30, 2024, future minimum lease payments under our operating lease liabilities were as follows: Operating leases (1) Within 1 year $ 97,725 2 years 96,824 3 years 88,570 4 years 76,815 5 years 62,726 Thereafter 176,529 Total lease payments $ 599,189 Less amount representing interest (159,973) Total lease liability $ 439,216 Less current lease liability (60,692) Total noncurrent lease liability $ 378,524 ___________________________ (1) |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Mar. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Items Measured at Fair Value on a Recurring Basis | The following items are measured at fair value on a recurring basis, subject to the disclosure requirements of ASC 820, Fair Value Measurements, at March 30, 2024 and April 1, 2023: Description Balance Sheet Location March 30, April 1, Assets Nonqualified retirement plan Other current assets $ 4,125 $ 3,743 Total assets $ 4,125 $ 3,743 |
Schedule of Estimated Fair Value of Long-Term Debt, Including Current Maturities | As of March 30, 2024 and April 1, 2023, the estimated fair value of the Company’s long-term debt, including current maturities, was as follows: March 30, April 1, Senior secured term loan facility $ 132,435 $ 153,915 2019 Elfa revolving facilities — 2,423 Obligations under finance leases 634 136 Revolving credit facility 16,000 5,000 Total fair value of debt $ 149,069 $ 161,474 |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Mar. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Fiscal Year Ended March 30, 2024 TCS Elfa Eliminations Total Net sales to third parties $ 801,431 $ 46,348 $ — $ 847,779 Intersegment sales — 64,625 (64,625) — Adjusted EBITDA 38,405 9,239 450 48,094 Depreciation and amortization 41,771 2,562 — 44,333 Interest expense, net 20,409 263 — 20,672 Capital expenditures (1) 36,463 3,431 — 39,894 Goodwill — — — — Trade names (1) 123,295 23,154 — 146,449 Assets (1) 858,116 86,526 (8,277) 936,365 Fiscal Year Ended April 1, 2023 TCS Elfa Eliminations Total Net sales to third parties $ 991,379 $ 55,879 $ — $ 1,047,258 Intersegment sales — 70,364 (70,364) — Adjusted EBITDA 106,104 15,546 (6,224) 115,426 Depreciation and amortization 36,357 2,548 — 38,905 Interest expense, net 15,640 531 — 16,171 Capital expenditures (1) 61,185 3,038 — 64,223 Goodwill 23,447 — — 23,447 Trade names (1) 187,048 34,230 — 221,278 Assets (1) 894,512 99,295 (8,633) 985,174 Fiscal Year Ended April 2, 2022 TCS Elfa Eliminations Total Net sales to third parties $ 1,023,193 $ 70,926 $ — $ 1,094,119 Intersegment sales — 60,794 (60,794) — Adjusted EBITDA 141,217 13,114 4,678 159,009 Depreciation and amortization 31,061 3,228 — 34,289 Interest expense, net 12,488 272 — 12,760 Capital expenditures (1) 29,746 3,643 — 33,389 Goodwill 221,159 — — 221,159 Trade names (1) 187,048 37,890 — 224,938 Assets (1) 1,093,447 107,822 (3,692) 1,197,577 ___________________________ (1) Tangible assets and trade names in the Elfa column are located outside of the United States. |
Reconciliation of Segment Income Before Taxes to Adjusted EBITDA | A reconciliation of Adjusted EBITDA to income before taxes is set forth below: Fiscal Year Ended March 30, April 1, April 2, (Loss) income before taxes $ (125,406) $ (143,766) $ 112,694 Add: Depreciation and amortization 44,333 38,905 34,289 Interest expense, net 20,672 16,171 12,760 Pre-opening costs (a) 2,861 2,006 694 Non-cash lease expense (b) (820) 547 (7,115) Impairment charges (c) 97,279 197,712 — Stock-based compensation (d) 1,870 3,382 4,263 Management transition costs (e) — — 473 Foreign exchange losses (gains) (f) (118) 23 (14) Severance charges (g) 4,125 383 — Elfa restructuring (h) 181 — — Legal settlement (i) 3,117 — — Acquisition-related costs (j) — 63 745 COVID-19 costs (k) — — 203 COVID-19 severance and other costs (l) — — 17 Adjusted EBITDA 48,094 115,426 159,009 ___________________________ (a) Non-capital expenditures associated with opening new stores and relocating stores, including marketing expenses, travel and relocation costs, and training costs. We adjust for these costs to facilitate comparisons of our performance from period to period. (b) Reflects the extent to which our annual GAAP operating lease expense has been above or below our cash operating lease payments. The amount varies depending on the average age of our lease portfolio (weighted for size), as our GAAP operating lease expense on younger leases typically exceeds our cash operating lease payments, while our GAAP operating lease expense on older leases is typically less than our cash operating lease payments. (c) Non-cash trade name impairment charge incurred in the fourth quarter of fiscal 2023, as well as non-cash goodwill impairment charge incurred in the second quarter of fiscal 2023 and in the fourth quarter of fiscal 2022, which we do not consider in our evaluation of ongoing performance. (d) Non-cash charges related to stock-based compensation programs, which vary from period to period depending on volume and vesting timing of awards. We adjust for these charges to facilitate comparisons from period to period. (e) Costs related to the transition of key executives including signing bonus, severance and relocation expenses recorded as selling, general and administrative expenses, which we do not consider in our evaluation of ongoing performance. (f) Realized foreign exchange transactional gains/losses our management does not consider in our evaluation of our ongoing operations. (g) Severance charges associated with the elimination of certain positions recorded in other expenses in fiscal 2023 and fiscal 2022, of which approximately $1,590 remains recorded in accrued liabilities on the consolidated balance sheet as of March 30, 2024, and which we do not consider in our evaluation of ongoing performance. (h) Charges associated with the close-down of Elfa segment sales operations in Poland in fiscal 2023, which we do not consider in our evaluation of ongoing performance. (i) The Company incurred costs associated with a legal settlement inclusive of legal fees in fiscal 2023 recorded in other expenses, which we do not consider in our evaluation of ongoing performance. (j) Includes acquisition and legal costs incurred in fiscal 2022 and fiscal 2021 associated with the acquisition of C Studio on December 30, 2021, all of which are recorded as selling, general and administrative expenses, which we do not consider in our evaluation of ongoing performance. (k) Includes incremental costs attributable to the COVID-19 pandemic, such as sanitization costs in fiscal 2021, and are recorded as selling, general and administrative expenses which we do not consider in our evaluation of ongoing performance. (l) COVID-19 severance and other credits/costs include amounts our management does not consider in our evaluation of our ongoing operations. |
Schedule of Sales by Merchandise Category as a Percentage of Total Net Sales | The following table shows sales by merchandise category as a percentage of total net sales for fiscal 2023, fiscal 2022, and fiscal 2021: Fiscal Year Ended March 30, April 1, April 2, Custom Spaces (1) 41 % 39 % 38 % Kitchen and Trash 16 % 17 % 17 % Closets 13 % 13 % 14 % Storage and Shelving 13 % 13 % 14 % Office and Hooks 7 % 8 % 7 % Bath, Travel, Laundry 6 % 6 % 6 % Gift Packaging, Seasonal, Impulse 3 % 3 % 3 % Other 1 % 1 % 1 % Total 100 % 100 % 100 % ___________________________ (1) Custom Spaces includes metal-based and wood-based custom space products and in-home installation services and Elfa segment sales to third parties. Starting in fiscal 2022, the closet lifestyle department products sold by the TCS segment are now included in the remaining general merchandise categories versus prior inclusion in Custom Spaces. |
Net (loss) income per common _2
Net (loss) income per common share (Tables) | 12 Months Ended |
Mar. 30, 2024 | |
Earnings Per Share [Abstract] | |
Reconciliation of Net (Loss) Income | The following is a reconciliation of net (loss) income and the number of shares used in the basic and diluted net (loss) income per common share calculations: Fiscal Year Ended March 30, April 1, April 2, Numerator: Net (loss) income $ (103,287) $ (158,856) $ 81,718 Denominator: Weighted-average common shares — basic 49,476,871 49,539,875 49,447,612 Nonvested restricted stock awards and other dilutive securities — — 846,506 Weighted-average common shares — diluted 49,476,871 49,539,875 50,294,118 Net (loss) income per common share — basic $ (2.09) $ (3.21) $ 1.65 Net (loss) income per common share — diluted $ (2.09) $ (3.21) $ 1.62 Antidilutive securities not included: Stock options outstanding 1,129,777 1,534,774 1,687,508 Nonvested restricted stock awards 605,606 631,025 140,826 |
Nature of business and summar_4
Nature of business and summary of significant accounting policies - Narrative (Details) | 12 Months Ended | |||
Mar. 30, 2024 USD ($) ft² state store | Apr. 01, 2023 USD ($) | Apr. 02, 2022 USD ($) | Apr. 03, 2021 | |
Description of business and basis of presentation | ||||
Number of stores | store | 102 | |||
Average size of stores (in square feet) | ft² | 24,000 | |||
Average selling square feet in stores (in square feet) | ft² | 18,000 | |||
Number of states | state | 34 | |||
Period of estimated performance | 48 months | 48 months | 48 months | |
Gift card breakage recorded | $ 1,195,000 | $ 1,548,000 | $ 1,403,000 | |
Advertising expense incurred | 27,647,000 | 35,786,000 | 36,784,000 | |
Uncertain tax positions requiring accrual | 0 | 0 | ||
Allowances for doubtful accounts | 112,000 | 820,000 | ||
Cost capitalized in connection with the development of internally used software | 13,115,000 | 28,211,000 | 11,068,000 | |
Cost amortized in connection with the development of internally used software | $ 11,007,000 | 7,610,000 | 4,823,000 | |
Minimum term period of currency-related hedge instruments | 1 month | |||
Maximum term period of currency-related hedge instruments | 12 months | |||
Self-insurance reserves recorded in accrued liabilities | $ 2,359,000 | 2,450,000 | ||
Foreign currency realized gains (losses) | 118,000 | (23,000) | $ 14,000 | |
Elfa | ||||
Description of business and basis of presentation | ||||
Carrying amounts of net assets | $ 99,171,000 | $ 110,215,000 | ||
The Container Store Group, Inc. | LGP | ||||
Description of business and basis of presentation | ||||
Ownership percentage (less than) | 50% |
Nature of business and summar_5
Nature of business and summary of significant accounting policies - Property, Plant, and Equipment (Details) | Mar. 30, 2024 |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 30 years |
Furniture, fixtures, and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture, fixtures, and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Computer software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 2 years |
Computer software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Goodwill and trade names - Narr
Goodwill and trade names - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Apr. 01, 2023 | Jan. 01, 2023 | Mar. 30, 2024 | Sep. 30, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Segment Reporting Information [Line Items] | ||||||
Non-cash impairment charges for goodwill | $ 97,986 | $ 99,726 | $ 23,447 | $ 23,447 | $ 197,712 | |
Trade name impairment charges | $ 73,832 | $ 0 | ||||
TCS | ||||||
Segment Reporting Information [Line Items] | ||||||
Trade name impairment charges | $ 63,753 | |||||
Elfa | ||||||
Segment Reporting Information [Line Items] | ||||||
Trade name impairment charges | $ 10,079 |
Goodwill and trade names - Carr
Goodwill and trade names - Carrying Amounts of Goodwill and Trade Names (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Apr. 01, 2023 | Jan. 01, 2023 | Sep. 30, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | Apr. 02, 2022 | |
Goodwill | ||||||
Gross balance | $ 428,811 | $ 428,811 | $ 428,811 | $ 428,811 | ||
Accumulated impairment charges | (207,652) | (405,364) | (207,652) | (207,652) | ||
Total, net | 23,447 | 0 | 23,447 | 221,159 | ||
Impairment charges | (97,986) | $ (99,726) | $ (23,447) | (23,447) | (197,712) | |
Foreign currency translation adjustments | 0 | 0 | ||||
Trade names | ||||||
Gross balance | 252,812 | 251,815 | 252,812 | 256,472 | ||
Accumulated impairment charges | (31,534) | (31,534) | (31,534) | (31,534) | ||
Total, net | $ 221,278 | 146,449 | 221,278 | 224,938 | ||
Impairment charges | $ (73,832) | 0 | ||||
Foreign currency translation adjustments | $ (997) | $ (3,660) | ||||
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairment charges | Impairment charges |
Detail of certain balance she_3
Detail of certain balance sheet accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Accounts receivable, net: | ||
Trade receivables, net | $ 13,943 | $ 18,269 |
Credit card receivables | 4,859 | 6,165 |
Other receivables | 3,208 | 1,436 |
Accounts receivable, net | 22,010 | 25,870 |
Inventory: | ||
Finished goods | 150,493 | 160,108 |
Raw materials | 6,869 | 9,289 |
Work in progress | 1,072 | 1,240 |
Inventory | 158,434 | 170,637 |
Property and equipment, net: | ||
Property and equipment, gross | 591,963 | 557,434 |
Less accumulated depreciation and amortization | (436,561) | (398,732) |
Property and equipment, net | 155,402 | 158,702 |
Accrued liabilities: | ||
Accrued payroll, benefits and bonuses | 20,590 | 24,224 |
Unearned revenue | 14,385 | 15,700 |
Accrued transaction and property tax | 12,272 | 14,072 |
Gift cards and store credits outstanding | 13,365 | 13,002 |
Accrued sales returns | 1,974 | 3,366 |
Accrued interest | 215 | 189 |
Other accrued liabilities | 7,275 | 4,120 |
Accrued liabilities | 70,076 | 74,673 |
Unearned revenue recognized in period | 14,872 | |
Gifts cards and store credits revenue recognized in period | 3,759 | |
Land and buildings | ||
Property and equipment, net: | ||
Property and equipment, gross | 15,756 | 15,693 |
Furniture and fixtures | ||
Property and equipment, net: | ||
Property and equipment, gross | 87,365 | 84,359 |
Machinery and equipment | ||
Property and equipment, net: | ||
Property and equipment, gross | 114,684 | 110,908 |
Computer software and equipment | ||
Property and equipment, net: | ||
Property and equipment, gross | 180,332 | 163,943 |
Leasehold improvements | ||
Property and equipment, net: | ||
Property and equipment, gross | 182,515 | 171,522 |
Construction in progress | ||
Property and equipment, net: | ||
Property and equipment, gross | 10,111 | 10,363 |
Other | ||
Property and equipment, net: | ||
Property and equipment, gross | $ 1,200 | $ 646 |
Long-term debt and revolving _3
Long-term debt and revolving lines of credit - Schedule of Long-Term Debt and Revolving Lines of Credit (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Apr. 01, 2023 |
Debt Instrument [Line Items] | ||
Total debt | $ 180,134 | $ 173,059 |
Less current portion | (2,166) | (4,486) |
Less deferred financing costs | (3,357) | (5,188) |
Total long-term debt | 174,611 | 163,385 |
Senior secured term loan facility | ||
Debt Instrument [Line Items] | ||
Total debt | 163,500 | 165,500 |
Obligations under finance leases | ||
Debt Instrument [Line Items] | ||
Total debt | 634 | 136 |
2019 Elfa revolving facilities | ||
Debt Instrument [Line Items] | ||
Total debt | 0 | 2,423 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total debt | $ 16,000 | $ 5,000 |
Long-term debt and revolving _4
Long-term debt and revolving lines of credit - Scheduled Total Revolving Lines of Credit and Debt Maturities (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Apr. 01, 2023 |
Debt Disclosure [Abstract] | ||
Within 1 year | $ 2,196 | |
2 years | 177,674 | |
3 years | 135 | |
4 years | 129 | |
5 years | 0 | |
Thereafter | 0 | |
Total debt | $ 180,134 | $ 173,059 |
Long-term debt and revolving _5
Long-term debt and revolving lines of credit - Senior Secured Term Loan Facility (Details) - Senior secured term loan facility $ in Thousands | Mar. 30, 2024 USD ($) | Jun. 14, 2023 USD ($) | Apr. 03, 2021 USD ($) |
Debt Instrument [Line Items] | |||
Amount of quarterly amortization payments | $ 500 | ||
Debt Instrument leverage ratio covenant | 3.3 | 2.75 | |
Outstanding borrowings | $ 160,142 | ||
Deferred financing costs | $ 5,579 | ||
Maximum | |||
Debt Instrument [Line Items] | |||
First priority security interest in stock in foreign subsidiaries (as a percent) | 65% | ||
SOFR | |||
Debt Instrument [Line Items] | |||
Interest rate margin (as a percent) | 4.75% | ||
SOFR | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate margin (as a percent) | 1% | ||
SOFR | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate margin (as a percent) | 5% | ||
Base Rate | |||
Debt Instrument [Line Items] | |||
Interest rate margin (as a percent) | 3.75% | ||
Base Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate margin (as a percent) | 4% |
Long-term debt and revolving _6
Long-term debt and revolving lines of credit - Revolving Credit Facility (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
May 22, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | Apr. 02, 2022 | |
Debt Instrument [Line Items] | ||||
Borrowings on long-term debt | $ 31,000 | $ 40,000 | $ 38,000 | |
Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount of borrowings | $ 100,000 | |||
Amount of increase in commitments upon such request from the Company | 50,000 | |||
Swing line advances limit | 15,000 | |||
Letter of credit facility sub-limit | $ 40,000 | |||
Consolidated fixed-charge coverage ratio to be maintained if excess availability is less than $10,000 at any time | 1 | |||
Amount of dividend payable during term of debt | $ 15,000 | |||
Amount of availability under facility | 80,980 | |||
Line of credit, draw down | 34,020 | |||
Borrowings on long-term debt | $ 16,000 | |||
SOFR | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin (as a percent) | 1.25% | |||
Minimum | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Amount of dividend payable during term of debt | $ 12,500 | |||
Threshold fixed charge coverage ratio for payment of dividend | 1.10 | |||
Maximum | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
First priority security interest in stock in foreign subsidiaries (as a percent) | 65% | |||
Threshold amount of excess availability for which consolidated fixed-charge coverage ratio of 1.0 to 1.0 is to be maintained | $ 10,000 |
Long-term debt and revolving _7
Long-term debt and revolving lines of credit - Elfa Senior Secured Credit Facilities (Details) kr in Millions | Mar. 18, 2019 SEK (kr) | Mar. 30, 2024 USD ($) |
2019 Elfa senior secured credit facilities | ||
Debt Instrument [Line Items] | ||
Amount of availability under facility | $ 10,296,000 | |
Outstanding borrowings | 0 | |
2019 Original Revolving Facility | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount of borrowings | kr 110 | 10,296,000 |
2019 Additional Revolving Facility | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount of borrowings | kr 115 | 10,764,000 |
2019 Elfa Revolving Facilities | Base Rate | ||
Debt Instrument [Line Items] | ||
Interest rate margin (as a percent) | 1.40% | |
2019 Elfa Revolving Facilities | STIBOR | ||
Debt Instrument [Line Items] | ||
Interest rate margin (as a percent) | 1.70% | |
Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount of borrowings | kr 25 | $ 2,340,000 |
Minimum | 2019 Elfa senior secured credit facilities | ||
Debt Instrument [Line Items] | ||
Consolidated equity ratio after year one | 32.50% | |
Maximum | 2019 Elfa senior secured credit facilities | ||
Debt Instrument [Line Items] | ||
Consolidated ratio of net debt to EBITDA at end of each calendar quarter | 3.20 |
Long-term debt and revolving _8
Long-term debt and revolving lines of credit - Deferred Financing Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 30, 2024 | Apr. 01, 2023 | Apr. 02, 2022 | Apr. 03, 2021 | |
Debt Instrument [Line Items] | ||||
Amortization expense of deferred financing costs | $ 1,884 | $ 1,884 | $ 1,883 | |
Amortization expense of deferred financing costs: | ||||
Within 1 year | 1,802 | |||
2 years | 1,653 | |||
3 years | 0 | |||
4 years | 0 | |||
5 years | 0 | |||
Thereafter | 0 | |||
Total | 3,455 | |||
Senior secured term loan facility | ||||
Debt Instrument [Line Items] | ||||
Deferred financing costs | $ 5,579 | |||
Amortization expense of deferred financing costs: | ||||
Within 1 year | 1,751 | |||
2 years | 1,606 | |||
3 years | 0 | |||
4 years | 0 | |||
5 years | 0 | |||
Thereafter | 0 | |||
Total | 3,357 | |||
Revolving credit facility | ||||
Amortization expense of deferred financing costs: | ||||
Within 1 year | 51 | |||
2 years | 47 | |||
3 years | 0 | |||
4 years | 0 | |||
5 years | 0 | |||
Thereafter | 0 | |||
Total | $ 98 |
Income taxes - Components of th
Income taxes - Components of the Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Apr. 02, 2022 | |
(Loss) income before income taxes: | |||
U.S. | $ (122,030) | $ (149,604) | $ 98,389 |
Foreign | (3,376) | 5,838 | 14,305 |
(Loss) income before taxes | (125,406) | (143,766) | 112,694 |
Current | |||
Federal | 1,459 | 10,942 | 18,510 |
State | 313 | 3,758 | 6,194 |
Foreign | 860 | 741 | 2,651 |
Total current provision | 2,632 | 15,441 | 27,355 |
Deferred | |||
Federal | (17,779) | (490) | 2,998 |
State | (5,365) | (228) | 326 |
Foreign | (1,607) | 367 | 297 |
Total deferred (benefit) provision | (24,751) | (351) | 3,621 |
Total (benefit) provision for income taxes | $ (22,119) | $ 15,090 | $ 30,976 |
Income taxes - Effective Income
Income taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Apr. 02, 2022 | |
Income Tax Disclosure [Abstract] | |||
(Benefit) provision computed at federal statutory rate | $ (26,335) | $ (30,191) | $ 23,666 |
Permanent differences | 7,960 | 42,283 | 1,460 |
Change in valuation allowance | (46) | 422 | 80 |
State income taxes, net of federal benefit | (3,991) | 2,810 | 5,189 |
Effect of foreign income taxes | (5) | (31) | (75) |
Other, net | 298 | (203) | 656 |
Total (benefit) provision for income taxes | $ (22,119) | $ 15,090 | $ 30,976 |
Income taxes - Components of De
Income taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Apr. 01, 2023 |
Deferred tax assets: | ||
Inventory | $ 2,602 | $ 2,422 |
Loss and credit carryforwards | 5,938 | 5,619 |
Stock-based compensation | 797 | 4,129 |
Accrued liabilities | 7,209 | 4,346 |
Operating lease liabilities | 112,644 | 96,232 |
Capital assets | 54 | 73 |
Other | 742 | 31 |
Deferred tax assets before valuation allowance | 129,986 | 112,852 |
Valuation allowance | (5,301) | (5,402) |
Total deferred tax assets | 124,685 | 107,450 |
Deferred tax liabilities: | ||
Intangibles | (38,249) | (56,990) |
Operating lease assets | (105,005) | (88,325) |
Capital assets | (5,223) | (10,905) |
Total deferred tax liabilities | (148,477) | (156,220) |
Net deferred tax liabilities | $ (23,792) | $ (48,770) |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Apr. 01, 2023 |
Income Tax Disclosure [Abstract] | ||
Tax credits | $ 298 | $ 472 |
Deferred tax assets for net operating loss carryovers | 2,468 | 1,975 |
Valuation allowances | $ 1,909 | $ 1,975 |
Employee benefit plans - 401(k)
Employee benefit plans - 401(k) Plan (Details) - USD ($) | 12 Months Ended | ||||
Jan. 01, 2020 | Dec. 31, 2019 | Mar. 30, 2024 | Apr. 01, 2023 | Apr. 02, 2022 | |
Defined Contribution Plan Disclosure [Line Items] | |||||
Requisite service period to participate in plan | 11 months | ||||
Maximum contribution by participants (as a percent) | 80% | ||||
Matching contribution by the company as a percentage of compensation | 4% | ||||
Total matching contributions | $ 1,812,000 | $ 1,803,000 | $ 1,824,000 | ||
Participants under 50 years of age | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Maximum contribution by participants | $ 20,500 | ||||
Participants aged 50 years and over | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Maximum contribution by participants | $ 28,000 | ||||
401(k) Plan | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Total matching contributions | $ 3,876,000 | $ 4,062,000 | $ 2,083,000 |
Employee benefit plans - Nonqua
Employee benefit plans - Nonqualified Retirement Plan (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Apr. 01, 2023 |
Retirement Benefits [Abstract] | ||
Fair value of the plan asset | $ 4,125 | $ 3,743 |
Carrying value of the plan liability | $ 4,127 | $ 3,754 |
Employee benefit plans - Pensio
Employee benefit plans - Pension Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Apr. 02, 2022 | |
Retirement Benefits [Abstract] | |||
Curtailment gain | $ 0 | $ 0 | $ 669 |
Employee benefit plans - Pens_2
Employee benefit plans - Pension Plan Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Apr. 02, 2022 | |
Change in benefit obligation: | |||
Projected benefit obligation, beginning of year | $ 3,402 | $ 4,553 | |
Service cost | 0 | 0 | $ 19 |
Interest cost | 136 | 94 | 101 |
Benefits paid | (181) | (169) | |
Actuarial loss (gain) | 154 | (634) | |
Exchange rate gains | (109) | (442) | |
Projected benefit obligation, end of year | 3,402 | 3,402 | $ 4,553 |
Fair value of plan assets, end of year | 0 | 0 | |
Underfunded status, end of year | $ (3,402) | $ (3,402) | |
Discount rate (as a percent) | 3.70% | 4.20% | |
Rate of pay increases (as a percent) | 0% | 0% |
Employee benefit plans - Compon
Employee benefit plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Apr. 02, 2022 | |
Components of net periodic benefit cost: | |||
Service cost | $ 0 | $ 0 | $ 19 |
Interest cost | 136 | 94 | 101 |
Curtailment gain | 0 | 0 | (669) |
Amortization of unrecognized net loss | 75 | 86 | 118 |
Net periodic benefit cost for defined benefit plan | 211 | 180 | (431) |
Defined contribution plans | 1,812 | 1,803 | 1,824 |
Total net periodic benefit cost | $ 2,023 | $ 1,983 | $ 1,393 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general, and administrative expenses (excluding depreciation and amortization) | Selling, general, and administrative expenses (excluding depreciation and amortization) | Selling, general, and administrative expenses (excluding depreciation and amortization) |
Stock-based compensation - Narr
Stock-based compensation - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 30, 2024 | Apr. 01, 2023 | Apr. 02, 2022 | Sep. 12, 2017 | |
Restricted Stock Awards | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Stock-based compensation costs | $ 1,870 | $ 3,382 | $ 4,262 | |
Unrecognized compensation expense related to outstanding restricted stock awards | $ 1,420 | |||
Average remaining service period for recognition of unrecognized compensation cost | 1 year 1 month 6 days | |||
Nonqualified stock options | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 0 | 0 | 0 | |
Unrecognized compensation cost | 0 | |||
Intrinsic value | 0 | 415 | 155 | |
Fair value of shares vested | $ 0 | $ 0 | $ 0 | |
2013 Equity Plan | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Number of shares reserved for issuance (in shares) | 3,616,570 | |||
Amended and Restated 2013 Incentive Award Plan | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Number of shares reserved for issuance (in shares) | 11,116,570 | |||
Amended and Restated 2013 Incentive Award Plan | Nonqualified stock options | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Awards granted (in shares) | 0 | 0 | 0 | |
The Container Store Group, Inc. 2023 Incentive Award Plan | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Number of shares reserved for issuance (in shares) | 4,478,151 | |||
Number of shares available for grant (in shares) | 4,311,563 |
Stock-based compensation - Rest
Stock-based compensation - Restricted Stock Awards (Details) - $ / shares | 12 Months Ended | |||||||||
Mar. 26, 2024 | Aug. 30, 2023 | Jun. 01, 2023 | Aug. 31, 2022 | Jun. 01, 2022 | Mar. 29, 2022 | Sep. 01, 2021 | Jun. 01, 2021 | Mar. 30, 2024 | Apr. 01, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Total Number of Awards Granted (in shares) | 1,753,777 | 1,148,073 | ||||||||
Grant Date Fair Value (in dollars per share) | $ 2.17 | $ 7.45 | ||||||||
Restricted Stock Awards | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Total Number of Awards Granted (in shares) | 20,848 | 146,340 | 1,586,596 | 153,392 | 994,681 | 6,408 | 90,040 | 335,719 | ||
Grant Date Fair Value (in dollars per share) | $ 1.08 | $ 2.34 | $ 2.48 | $ 6.78 | $ 7.56 | $ 8.67 | $ 11.55 | $ 13.22 | ||
Time-Based Restricted Stock Awards | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Total Number of Awards Granted (in shares) | 20,848 | 146,340 | 394,729 | 153,392 | 234,062 | 6,408 | 90,040 | 98,343 | ||
Vesting Period | 1 year | 1 year | 3 years | 1 year | 3 years | 1 year | 1 year | 3 years | ||
Performance-Based Restricted Stock Awards | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Total Number of Awards Granted (in shares) | 1,191,867 | 760,619 | 237,376 | |||||||
Vesting Period | 3 years | 3 years | 3 years | |||||||
Number of Performance-Based Awards that Met Performance Condition (in shares) | 0 | 0 | 237,376 |
Stock-based compensation - Re_2
Stock-based compensation - Restricted Stock Awards Activity (Details) - $ / shares | 12 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Restricted Stock Awards | ||
Nonvested, beginning balance (in shares) | 762,075 | 990,773 |
Granted (in shares) | 1,753,777 | 1,148,073 |
Vested (in shares) | (426,249) | (412,988) |
Forfeited (in shares) | (1,351,489) | (877,301) |
Withheld related to net settlement (in shares) | (57,984) | (86,482) |
Nonvested, ending balance (in shares) | 680,130 | 762,075 |
Weighted Average Grant Date Fair Value | ||
Nonvested, beginning balance (in dollars per share) | $ 7.87 | $ 7.89 |
Granted (in dollars per share) | 2.17 | 7.45 |
Vested (in dollars per share) | 7.23 | 7.84 |
Forfeited (in dollars per share) | 2.45 | 7.50 |
Withheld related to net settlement (in dollars per share) | 6.41 | 6.22 |
Nonvested, ending balance (in dollars per share) | $ 4.39 | $ 7.87 |
Stock-based compensation - Stoc
Stock-based compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Apr. 02, 2022 | |
Shares | |||
Beginning balance (in shares) | 1,713,070 | 1,966,465 | 2,259,041 |
Granted (in shares) | 0 | 0 | |
Exercised (in shares) | 0 | (73,594) | (125,777) |
Forfeited (in shares) | 0 | 0 | 0 |
Expired (in shares) | (1,330,988) | (179,801) | (166,799) |
Ending balance (in shares) | 382,082 | 1,713,070 | 1,966,465 |
Weighted- average exercise price (per share) | |||
Balance at the beginning of the period (in dollars per share) | $ 15.74 | $ 15.49 | $ 15.07 |
Granted (in dollars per share) | 0 | 0 | |
Exercised (in dollars per share) | 0 | 4.62 | 4.50 |
Forfeited (in dollars per share) | 0 | 0 | 0 |
Expired (in dollars per share) | 18 | 17.53 | 18.09 |
Balance at the end of the period (in dollars per share) | $ 7.86 | $ 15.74 | $ 15.49 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | |||
Vested and exercisable at end of year (in shares) | 382,082 | 1,713,070 | 1,966,465 |
Vested and exercisable at end of year, weighted average exercise price (in dollars per share) | $ 7.86 | $ 15.74 | $ 15.49 |
Weighted-average contractual term remaining, ending balance | 2 years 6 months 3 days | 1 year 2 months 26 days | 2 years 2 months 15 days |
Vested and exercisable at end of year, weighted-average contractual term remaining | 2 years 6 months 3 days | 1 year 2 months 26 days | 2 years 2 months 15 days |
Aggregate intrinsic value, ending balance | $ 0 | $ 0 | $ 1,287,521 |
Vested and exercisable at end of year, aggregate intrinsic value | $ 0 | $ 0 | $ 1,287,521 |
Shareholders' equity - Common S
Shareholders' equity - Common Stock (Details) $ / shares in Units, $ in Thousands | Mar. 30, 2024 USD ($) vote $ / shares shares | Apr. 01, 2023 $ / shares shares |
Equity [Abstract] | ||
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 49,607,811 | 49,181,562 |
Number of votes per share entitled to holders | vote | 1 | |
Redemptions or sinking fund provisions | $ | $ 0 |
Shareholders' equity - Preferre
Shareholders' equity - Preferred Stock (Details) | Mar. 30, 2024 $ / shares shares |
Equity [Abstract] | |
Preferred stock, shares authorized (in shares) | 5,000,000 |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 |
Preferred stock, shares issued (in shares) | 0 |
Preferred stock, shares outstanding (in shares) | 0 |
Shareholders' equity - Stock Re
Shareholders' equity - Stock Repurchase Program (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Aug. 01, 2022 |
Equity [Abstract] | ||
Authorized amount of stock repurchases | $ 30,000 | |
Remaining shares available for repurchase | $ 25,000 |
Accumulated other comprehensi_3
Accumulated other comprehensive loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Apr. 02, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at the beginning of period | $ 262,185 | $ 428,096 | $ 353,669 |
Other comprehensive (loss) income before reclassifications, net of tax | (934) | (5,065) | (6,187) |
Amounts reclassified to earnings, net of tax | 0 | 0 | (2,254) |
Net current period other comprehensive (loss) income | (934) | (5,065) | (8,441) |
Balance at the end of period | 159,691 | 262,185 | 428,096 |
Unrecognized net actuarial loss included in accumulated other comprehensive income | 1,143 | 1,117 | |
Accumulated other comprehensive income (loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at the beginning of period | (32,509) | (27,444) | (19,003) |
Balance at the end of period | (33,443) | (32,509) | (27,444) |
Foreign currency hedge instruments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at the beginning of period | 0 | 51 | 3,174 |
Other comprehensive (loss) income before reclassifications, net of tax | 0 | (51) | (777) |
Amounts reclassified to earnings, net of tax | 0 | 0 | (2,346) |
Net current period other comprehensive (loss) income | 0 | (51) | (3,123) |
Balance at the end of period | 0 | 0 | 51 |
Pension liability adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at the beginning of period | (1,117) | (1,909) | (2,415) |
Other comprehensive (loss) income before reclassifications, net of tax | (26) | 792 | 414 |
Amounts reclassified to earnings, net of tax | 0 | 0 | 92 |
Net current period other comprehensive (loss) income | (26) | 792 | 506 |
Balance at the end of period | (1,143) | (1,117) | (1,909) |
Foreign currency translation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at the beginning of period | (31,392) | (25,586) | (19,762) |
Other comprehensive (loss) income before reclassifications, net of tax | (908) | (5,806) | (5,824) |
Amounts reclassified to earnings, net of tax | 0 | 0 | 0 |
Net current period other comprehensive (loss) income | (908) | (5,806) | (5,824) |
Balance at the end of period | $ (32,300) | $ (31,392) | $ (25,586) |
Foreign currency forward cont_2
Foreign currency forward contracts (Details) | 12 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Apr. 02, 2022 | |
Derivative [Line Items] | |||
Purchase of inventory from use of forward contracts in Swedish krona (as a percent) | 0% | 1% | 97% |
Minimum | Foreign Exchange Forward | |||
Derivative [Line Items] | |||
Term of contract | 1 month | ||
Maximum | Foreign Exchange Forward | |||
Derivative [Line Items] | |||
Term of contract | 12 months |
Leases - Narrative (Details)
Leases - Narrative (Details) | Mar. 30, 2024 store |
Leases | |
Number of store locations | 102 |
Minimum | |
Leases | |
Expiration term | 1 year |
Maximum | |
Leases | |
Expiration term | 15 years |
Leases - Components of Lease Co
Leases - Components of Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Leases [Abstract] | ||
Operating lease costs | $ 94,974 | $ 91,009 |
Variable lease costs | 707 | 1,113 |
Total lease costs | $ 95,681 | $ 92,122 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Operating Lease Term and Incremental Borrowing Rate (Details) | Mar. 30, 2024 | Apr. 01, 2023 |
Leases [Abstract] | ||
Weighted average remaining lease term (years) | 6 years 10 months 24 days | 6 years 6 months |
Weighted average incremental borrowing rate | 9.50% | 10.50% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) $ in Thousands | Mar. 30, 2024 USD ($) lease | Apr. 01, 2023 USD ($) |
Leases [Abstract] | ||
Within 1 year | $ 97,725 | |
2 years | 96,824 | |
3 years | 88,570 | |
4 years | 76,815 | |
5 years | 62,726 | |
Thereafter | 176,529 | |
Total lease payments | 599,189 | |
Less amount representing interest | (159,973) | |
Total lease liability | 439,216 | |
Less current lease liability | (60,692) | $ (57,201) |
Total noncurrent lease liability | 378,524 | $ 314,100 |
Amount of minimum lease payments for leases signed but not yet commenced | $ 40,686 | |
Number of leases not yet commenced | lease | 5 |
Commitments and contingencies (
Commitments and contingencies (Details) $ in Thousands | Mar. 30, 2024 USD ($) | Aug. 03, 2020 cause |
Loss Contingencies [Line Items] | ||
Alleged number of causes of action | cause | 11 | |
Standby Letters of Credit | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | $ | $ 3,977 |
Fair value measurements - Items
Fair value measurements - Items Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Mar. 30, 2024 | Apr. 01, 2023 |
Assets | ||
Nonqualified retirement plan | $ 4,125 | $ 3,743 |
Total assets | $ 4,125 | $ 3,743 |
Fair value measurements - Estim
Fair value measurements - Estimated Fair Value of Long-Term Debt, Including Current Maturities (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Apr. 01, 2023 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of debt | $ 149,069 | $ 161,474 |
2019 Elfa revolving facilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of debt | 0 | 2,423 |
Revolving credit facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of debt | 16,000 | 5,000 |
Senior secured term loan facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of debt | 132,435 | 153,915 |
Obligations under finance leases | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of debt | $ 634 | $ 136 |
Segment reporting - Narrative (
Segment reporting - Narrative (Details) | 12 Months Ended |
Mar. 30, 2024 segment country | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 2 |
Number of operating segments | 2 |
Elfa | |
Segment Reporting Information [Line Items] | |
Number of countries in which products are sold on wholesale basis | country | 30 |
Segment reporting - Financial I
Segment reporting - Financial Information by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Apr. 02, 2022 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 847,779 | $ 1,047,258 | $ 1,094,119 |
Adjusted EBITDA | 48,094 | 115,426 | 159,009 |
Depreciation and amortization | 44,333 | 38,905 | 34,289 |
Interest expense, net | 20,672 | 16,171 | 12,760 |
Capital expenditures | 39,894 | 64,223 | 33,389 |
Goodwill | 0 | 23,447 | 221,159 |
Trade names | 146,449 | 221,278 | 224,938 |
Assets | 936,365 | 985,174 | 1,197,577 |
Operating Segments | TCS | |||
Segment Reporting Information [Line Items] | |||
Net sales | 801,431 | 991,379 | 1,023,193 |
Adjusted EBITDA | 38,405 | 106,104 | 141,217 |
Depreciation and amortization | 41,771 | 36,357 | 31,061 |
Interest expense, net | 20,409 | 15,640 | 12,488 |
Capital expenditures | 36,463 | 61,185 | 29,746 |
Goodwill | 0 | 23,447 | 221,159 |
Trade names | 123,295 | 187,048 | 187,048 |
Assets | 858,116 | 894,512 | 1,093,447 |
Operating Segments | Elfa | |||
Segment Reporting Information [Line Items] | |||
Net sales | 46,348 | 55,879 | 70,926 |
Adjusted EBITDA | 9,239 | 15,546 | 13,114 |
Depreciation and amortization | 2,562 | 2,548 | 3,228 |
Interest expense, net | 263 | 531 | 272 |
Capital expenditures | 3,431 | 3,038 | 3,643 |
Goodwill | 0 | 0 | 0 |
Trade names | 23,154 | 34,230 | 37,890 |
Assets | 86,526 | 99,295 | 107,822 |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net sales | (64,625) | (70,364) | (60,794) |
Adjusted EBITDA | 450 | (6,224) | 4,678 |
Assets | (8,277) | (8,633) | (3,692) |
Eliminations | TCS | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | 0 |
Eliminations | Elfa | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 64,625 | $ 70,364 | $ 60,794 |
Segment reporting - Reconciliat
Segment reporting - Reconciliation of EBITDA (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Apr. 02, 2022 | |
Segment Reporting [Abstract] | |||
(Loss) income before taxes | $ (125,406) | $ (143,766) | $ 112,694 |
Add: | |||
Depreciation and amortization | 44,333 | 38,905 | 34,289 |
Interest expense, net | 20,672 | 16,171 | 12,760 |
Pre-opening costs | 2,861 | 2,006 | 694 |
Non-cash lease expense | (820) | 547 | (7,115) |
Impairment charges | 97,279 | 197,712 | 0 |
Stock-based compensation | 1,870 | 3,382 | 4,263 |
Management transition costs | 0 | 0 | 473 |
Foreign exchange losses (gains) | (118) | 23 | (14) |
Severance charges | 4,125 | 383 | 0 |
Elfa restructuring | 181 | 0 | 0 |
Legal settlement | 3,117 | 0 | 0 |
Acquisition-related costs | 0 | 63 | 745 |
COVID-19 costs | 0 | 0 | 203 |
COVID-19 severance and other costs | 0 | 0 | 17 |
Adjusted EBITDA | 48,094 | $ 115,426 | $ 159,009 |
Severance charges included in accrued liabilities as of balance sheet date | $ 1,590 |
Segment reporting - Sales by Me
Segment reporting - Sales by Merchandise Category (Details) - Product Concentration Risk - Revenue from Contract with Customer, Segment Benchmark | 12 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Apr. 02, 2022 | |
Segment Reporting Information [Line Items] | |||
Merchandise category as a percentage of total net sales | 100% | 100% | 100% |
Custom Spaces | |||
Segment Reporting Information [Line Items] | |||
Merchandise category as a percentage of total net sales | 41% | 39% | 38% |
Kitchen and Trash | |||
Segment Reporting Information [Line Items] | |||
Merchandise category as a percentage of total net sales | 16% | 17% | 17% |
Closets | |||
Segment Reporting Information [Line Items] | |||
Merchandise category as a percentage of total net sales | 13% | 13% | 14% |
Storage and Shelving | |||
Segment Reporting Information [Line Items] | |||
Merchandise category as a percentage of total net sales | 13% | 13% | 14% |
Office and Hooks | |||
Segment Reporting Information [Line Items] | |||
Merchandise category as a percentage of total net sales | 7% | 8% | 7% |
Bath, Travel, Laundry | |||
Segment Reporting Information [Line Items] | |||
Merchandise category as a percentage of total net sales | 6% | 6% | 6% |
Gift Packaging, Seasonal, Impulse | |||
Segment Reporting Information [Line Items] | |||
Merchandise category as a percentage of total net sales | 3% | 3% | 3% |
Other | |||
Segment Reporting Information [Line Items] | |||
Merchandise category as a percentage of total net sales | 1% | 1% | 1% |
Net (loss) income per common _3
Net (loss) income per common share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Apr. 02, 2022 | |
Numerator: | |||
Net (loss) income | $ (103,287) | $ (158,856) | $ 81,718 |
Denominator: | |||
Weighted-average common shares - basic (in shares) | 49,476,871 | 49,539,875 | 49,447,612 |
Nonvested restricted stock awards and other dilutive securities (in shares) | 0 | 0 | 846,506 |
Weighted-average common shares - diluted (in shares) | 49,476,871 | 49,539,875 | 50,294,118 |
Net (loss) income per common share - basic (in dollars per share) | $ (2.09) | $ (3.21) | $ 1.65 |
Net (loss) income per common share - diluted (in dollars per share) | $ (2.09) | $ (3.21) | $ 1.62 |
Stock options outstanding | |||
Antidilutive securities not included: | |||
Antidilutive securities | 1,129,777 | 1,534,774 | 1,687,508 |
Nonvested restricted stock awards | |||
Antidilutive securities not included: | |||
Antidilutive securities | 605,606 | 631,025 | 140,826 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | 2 Months Ended |
May 28, 2024 USD ($) | |
Revolving credit facility | Revolving Credit Facility Agreement | Line of Credit | Subsequent Event | |
Subsequent Event | |
Proceeds from Revolving Credit Facility | $ 30,000 |