TCS - Earnings call transcript Q3 2021 | The Container Store Group, Inc.

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Operator

Greetings and welcome to The Container Store Third Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn this conference over to your host, Ms. Relations. Investor Churchill, Caitlin ma'am. you, Thank

may begin your presentation. You

Caitlin Churchill

afternoon, The Container and results call. for year thanks for today conference us joining Store's earnings Good XXXX everyone third fiscal quarter

Miller, Malhotra, have Jeff their questions. formal open Officer; Speaking Satish will made Chief we call are Officer. After Satish and today Jeff the Chief remarks, Financial and Executive to

in objectives forward-looking are that materially these today XX-K forward-looking XX, release the for in Store's factors Container the management's in today's discussed risk undertake that any we this I today begin, The on matters obligation events, the and the statements statements. may would The Before business risks Container does could anticipated made company statements. call and future call not the like and on as uncertainties. statements Form are future certain our are plans update of differ to affect to issued forward-looking annual filed results report the those with Actual The forward-looking and subject to June SEC remind of everyone to performance and press XXXX. results Store relating of in conference referred date The from financial to that are

turn A over obtained at page Satish. today. Container website the today's issued directly refer of most the comparable reconciliation investor on this be GAAP schedule or Relations now by is I Finally, call. Store's may to to release the non-GAAP measures speakers press available Investor may A measures financial of adjusted certain release call will financial Satish? www.containerstore.com. The copy the in to measures the also non-GAAP of press and listing deck the

Satish Malhotra

by I'll outlook. financial and for then update thank joining our an review will QX and first on results followed performance, you today. detail discuss in Caitlin you, our our growth our Jeff strong Thank initiatives. fiscal discuss call our all more

quarters consecutive fiscal when demonstrated results expectations XXXX XXXX. quarter our surpassed of Our compared growth to and three third fiscal in

a For consolidated XXXX compared $X.XX the compared quarter, to the of fiscal adjusted third perspective, XXXX. net and of and $X.XX fiscal approximately of compared a quarter to quarter of quarter the fiscal in to From were third a the $X.XX delivered decrease EPS we X% $XXX.X XXXX XX% increase million, year. the prior profitability third in sales third of

Our XXXX was quarter broad-based, double-digit compared third our and general our categories Closets Custom when to in seen growth merchandise with business. performance both in

need us Solutions growth compared the which outpace Avera XXXX to the average premium fiscal ability especially space light in for shoes, spaces our innovative affordable was distinctive and and event in us custom much improve decades. to the rotating premium our more. not In provides closed This significantly with Closet experienced also to consecutive the XX% Closet $X,XXX and also but with we our and much acquisition to on seeing and home in to delivered with continues strength our which Customizations wood-based custom tested have acquisition has with from continued not Closets manufacturing added assortment day launch fully in organizer and system capabilities line provides Custom we beds we capacity our our above of developed history refined XXXX. is third with and fact, This Works fiscal Trim and when that where a Elfa finished a to ideal allows us line Transform only of mid-December in quarter, with number by spaces sales growth modular Elfa systems. garages, a expand valley include offices, or our close felt highest our manufacturer nationwide countertops, December by fueled ability over to above XXXX. to in XXX-degree Works only business Closet around wall XXXX Closets sell U.S. wood-based of so been margin options, Closet three business, a fiscal wine pantries, per for superior vast of XX, Works Custom and on Chicago-based lighting, storage, is the Custom we're $X,XXX, custom our for spaces very of closets their continues bolster which In and Home grow to our hardware, but sales. the profile walking

demand offering. to We are fiscal categories, customer look last to thrilled The respect only forward are increase XXXX product with X.X% we welcome our to Closet to exceptional an XX.X% and merchandise was delighted to to which have year. compared Works With down Container meeting of family an delivered Store to general

shift during reminder, organized series get third general offering. last the to categories the a made merchandise general in products strategic launch our still Netflix relevant As season, with from Edit. greatly largely the yet narrow, due core curated we quarter the categories highly compelling of was year, holiday XXXX benefited The the strength a our the in during merchandise Home while of holiday highlighting offering

holiday holiday continued we strong assortment at an categories above Stocking have holiday desirable period. revamp display Holiday improvements the store improved campaign, initial the also e-commerce captivating the performance expanded closets. made Wraps racially while start drove diverse front sales e-commerce sales a to featured to the browsing, Pickup, and Stuffers. of example, included focus by up to which supported compared sourced online new rates XXXX. maintain to and website-generated sales pages kitchen were QX this higher strong for Performance which was level sustainably penetration the our We For merchandise of a XX% compared XX.X% and with bags sell-through holiday-specific as quarter The up ways showcased Including our centers, core on continued of at our which and pleased of our was changes year drove speed. this site products pandemic, of engagement Curbside which storage pre-pandemic site to we and overall such in boxes shift product in gift customer XXXX. powered in were kitchen, the Since also we to dedicated

I my XX organization As I'm a proud months rallied how organization. the as lives share. power vision we Together, around against very initial Store our The of time. strong also transform our drive to strides through over goal a growth singular progress results, have reflect has Container of CEO, $X our and of to billion delivered the on made strategic making of financial We've our on made initiatives business market customers

innings, great a to much Now be and deal while accomplished we of. we are proud still in have early have the

update our strategic an relationship for our our first Now customers. Starting on pillars. three with with deepening

by Over to improved adding adding zone the areas and our past and in-store by shopping our hosts, our only but year, experience in key customers. cadence we've messaging also demonstrations we've not promotional refined

align have assortment product customer values. to curated we and addition, our In with interest

have retail. Elfa For of the real graphics in will The testimonials us seeing we you spaces event. transform before differentiate store see materials believe channels our of and what example, customers loved after from marketing of all with through transformations in rest throughout our digital which and and shown

assortment. pleased to in continue our to our and offer approximately mix expand we sustainable X,XXX product Additionally, are sustainable SKUs

in launch more the carry number This of Marie Marie's XXX to include expand an and Kondo will of collection fourth products office and excited new continue expansion we're the our we reach sustainable plans to that expansion share will sustainable will products We in quarter. the to broaden than and home our category.

to we draws kitchen which and adding lightweight collection to are strengthen love the the Home sustainable for Additionally, sustainable selection wood further I'm we expand and period buyers Edit our stores After collection our product exclusively. the collection very and pleased mix. the doing existing test select product customers work, all in Onyx design our stores, are a the Sand to March. successful in with carry

the welcome customer of relationship brand their customers branding our focus our of month, a opportunity markets to organization to later into we campaign expect To the organization. also store our custom invitation Our of to specialized others. while brand the to impressive campaign strength an product new as our And and and mode, new solutions services. It launch extensive open appeal to brand for excited head demonstrates the brand new is share with a growth campaign, continued current this I'm our we discover that all alongside in-home on to journeys that The new power to welcome will offering. icon. learn assortment, driving the us our end, is to transformational also an new allow and announce profitability deepening cloud

to day last excited customers join launch campaign on will of the begin our discover movement. welcoming the The help of and organized to most power century. are the branding X/XX/'XX, We organization this

new not engagement existing a expect we a we March, loyalty also customers but of Lastly, reward will tier-based with will at the attract that of believe level end launch new to program only customers. deeper

our our Moving to strategic reach. second pillar, expanding

We custom continue in $X,XXX. to win over spaces selling

For in QX, a saw event, sales strong growth event. $X,XXX of second the each. in pullback spaces held Avera-only with we we example, Despite our this promotional depth averaging

kicked and The the sale transformed under outpacing working hard XX% is made XX% sales our of make purchases to promotional progress Avera the confidence The in depth also annual off to customers changes The December we decision from with date promotion are purchases Elfa us length and XXX. fiscal also great two educate sale weeks off about Our decreased event and XX% year-to-date making our XXX XX. now our which our premium far in line Avera Elfa. than has shorter greater to off on specialists are of to the cadence changes demonstrate is give our historical and off results with XXXX in XXXX. to

the to New Colorado open As experienced which in our store expected smaller also to With to Colorado U.S. we in to highest expected in I of history. excited Springs, regard sales in excited smaller is XXXX. a day open format earlier, in announce the to our store sale are We're Salem, format mentioned XXXX. which spring fall we is stores, of open Hampshire in second

prioritizing opportunities. present new the we estate to attractive believe real team key continues Our most develop store growth the for markets pipeline additional opportunities,

reminder, a continue the we to see shop-in-shop to potential XXX potential to we new concept the explore. stores which in least at As the years in is add addition coming

within In addition expansion, excited our opportunities e-commerce. see also brick-and-mortar to we for we're the

and of our penetration and maintained grow a I listing including continue page e-commerce site our detail date, we healthy to mentioned, strides to a have browsing holistic product to To redesign made significant improve page. product we ways e-commerce have our identify experience. experience, As enhance and

show a our pages product. size additional example, color product will and customers multivariate options For of

filter the valuable finding right assists in also of items a product. on allow Smart their site. them time launched by saving improvement the dimension to to for filtering them We customers recently space, This

which we a spring. our It customers to to capabilities. to app where mobile strengthening I'm them meet us allow program. Lastly, new expect launch third final are continue be to thrilled another This way will loyalty our already about they core focus. to will Technology enhancements our to our brings be me this and shopping priority, new and introduce

we past fiscal expected a options added e-commerce addition Over talent ability of have recently our a Counsel. SVP payment and which solution, of year, to pleased attract and of an to mobile end the General of we're hired be and available point-of-sale new great including are customers, more XXXX. PayPal Also, with both for the the by

on gender strides sustainability improved premium From our will manufacturing third-party a the manufacturing space assessment expected ensure on summary, comes report tremendously coupled age, how or it we first to ESG we are the the strong it capability, of opportunity of are and new proud reason In to us strategy, last stakeholders pay which being results be conducted a custom a are amazing our completed attitude perspective, delivering manufacturing of working deliver our of employees regardless also allow I'm provide inclusive equitable and our from only in mentioned excitement, margins to our study benefit When is and our ethnicity. superior to air with to offering us will this are quarter we compensate our making home. capability shared strategic and race, and with the our priorities. endurance we We materiality every metal-based not teams. financial summer. Their modular ever the for of operational but wood-based execution equity

reduced We and driving cadence. of purposely duration our as the we profitable growth depth, are also promotional breadth more

Jeff? we opportunity the year, now our to As to our Jeff. I turn to our the existing by connection we look conclusion will ability with fiscal customers call over of customers to excited new to and are about encouraged welcome organization. the strengthen the

Jeff Miller

afternoon, good and everyone. you Thank

As impressive very we the year are sales Satish our deliver. expectations have continued third said, our quarter two results and with to performance and exceeded we consistent pleased

Custom declined of compared third Compared By the merchandise the retail contributing fiscal $XXX.X were the to XXXX. million points consolidated net increased decreased general fiscal to fiscal quarter, XX.X%. decrease for compared sales sales $XXX.X compared the million For Closet in XX.X% QX to in fiscal to were categories Container net basis down QX, quarter and Custom the Store were year-over-year Closets X.X% of and XXXX XXXX. X.X% sales third to XX.X% up flat X% The third XX.X% of sales. and quarter entire business to XXX XXXX, and increased general up categories were merchandise segment,

of and level be our e-commerce XXXX. with penetration we to continue we to as fiscal our the to reviewed, compared pleased sales maintain made the progress higher As ability website have Satish with

online third quarter website-generated fiscal Including to XX.X% net Curbside down to quarter when fiscal QX represented but We approximately period. Website-generated our XXXX. sales compared our XXXX QX shipped, $X.X and the compared up by XX% of prior decreased orders year of fiscal sales in of channel taken in XX.X% not year in with channel year-over-year to million XXXX, XX.X% from quarter when last $X.X QX XXXX. of a online the increased compared the to total fiscal in XX% million ended QX last in TCS sales compared totaling of third in but year Pickup, the were of online While QX XX.X%. our XX.X%

million. net We X.X% also strong to XX. down year in transformed the driven Closet our of last kicked by of had December were a Elfa versus million with year, large yet installed, but taken Custom $XX.X unearned third-party this a million to off $XX.X on result start event increase Elfa revenue $XX.X orders not which sales as

for product third million of driven primarily by compared to margin gross XX direct-to-consumer net to as basis commodity compared material tailwinds by Elfa with less our costs consolidated due of segment, well freight dollars X.X% and last million a XX% of due of compared standpoint, third year. costs. Excluding and were product offset translation, gross promotional increases fiscal to year. mix. XXXX, partially and a primarily favorable TCS decrease points By associated shipping XX.X% less increased gross margin gross margin commodity to as gross partially Elfa costs. favorable declined unfavorable QX to currency year, increased foreign $XXX.X due was activity. freight the compared XX X,XXX slightly the in activity costs compared increased in year-over-year. third-party as margin basis impact price by last profitability to a due Container higher well points Consolidated margin direct unfavorable QX the mix sales From customer to direct-to-consumer to as year-over-year The decreased increased material year, which SG&A gross margin compared was an associated to of to mix offset points sales, decreased sales, offset fiscal less basis basis points at direct quarter $XXX.X promotional last primarily with mix. Elfa increased less to XXXX, primarily discounting last Store shipping, by and partially commodity X,XXX quarter of less higher and

of management other fiscal acquisition part third last temporarily percent sales, quarter. year, expenses, Works back increased as well basis related by primarily the of certain that costs increased as a versus pulled of the and restoring SG&A incurred our expenses of XXXX strategy as in XXX costs a including to As benefit as due Closet to result in pandemic compensation points were

of to As sales. as XXXX, compared basis higher primarily fixed cost XXX SG&A percent third the points by decreased sales, driven quarter a of on leverage

year. per quarter the Our to compared $XX.X balance quarter pretax basis million million a with The Net combined quarter income in $X.XX decrease XXXX. $X.X and lower per was the as EBITDA compensation last decreased due quarter benefits of third $X.XX million $XX in third $XX.X third XX.X% the XXXX. to $XX.X net in to $XX.X to share million XXXX. XXXX share principal and senior diluted in expense or and interest XX.X% was fiscal term year income is for facility, share to from rate of the with in $X.XX interest related tax or decreased QX the quarter Adjusted last year the secured million $X.XX third year of quarter in in in or on effective the $X.XX year quarter million the quarter last XXXX. lower third this QX loan fiscal prior diluted as tax the net effective $X.XX share compared or rates. The on per the last tax the share-based XX.X% associated per year share in compared to of lower $XX.X $XX.X rate a diluted to compared for compared excess of in million diluted primarily XX.X% income the per on GAAP diluted million third million was per share to Adjusted QX in increased to diluted $X.X

sheet; with loans, million. credit quarter revolving on total million $XXX.X $XX revolver net liquidity, $XX cash, $XX on ended our our the term we million of our in availability borrowings in to million Turning on facilities including balance and borrowed approximately our

support along Our mind year, we up which year, in the times sales commodity disruption. strong operating is and experience like our still quarter with continue trends levels. headwinds lower-than-normal We inventory with in resulting last approximately prices to XX.X%. higher continue And supply are increase current with This reflected shipping freight we were retailers, this other of ended consolidated we longer unit to chain ratio and in lead leverage. value that the to increase inventory from leverage cost X.Xx levels inventory. account to for Keep

We adjusting have actively our the quarter flow year million. when retail and help mitigate negotiations, our methods the with costs $XXX cash $X.X pricing include to along to supply plan managing cadence. during we free to impacts compared generated of continue which and utilized million in employing vendor higher multiple promotional We chain, last

note, deferring actions the reminder, inventory last we due including on As preserving cash well cash as to as cash to lease a future the management balance million just $XXX,XXX for of as was $XX the deferred payments related On X, be of year, payments will lease fourth periods. in in the pandemic which focused quarter. mentioned outstanding uncertainty that January XXXX, the almost paid

Now outlook. for our

the adjusted As quarter a $X.XX week EBITDA in EPS. that included fourth last in million XXrd contributed $X.X a sales, $XX.X reminder, million please year note in that and

week though Excluding year in a of management in in is fourth part strategy. decline lesser fiscal million that is QX the XXXX. back in extent from driven X%. gross XX%. expected, our cost pulled fiscal QX consolidated and fourth the to approximately of week compared EPS with fiscal were to SG&A the $X.XX. commodity QX $XXX to of and expected also The is expected by the the increase temporarily primarily to to be the margin pressures share XXXX, XXXX in fiscal The of increases. of a XXXX earnings expenses associated prior quarter, associated per as expect impact decline of the sales and as XXrd adjusted XXXX, we is with the XXrd pandemic fourth is decline of restoration freight certain QX sales be expected quarter expected XX% quarter sales represents Inclusive deleverage

the to for XXXX week pressures fiscal year. against are up be We being are full XXrd last experiencing proud margin despite to despite track and that EPS the we year growth on the deliver

capital million remarks. million, expect for we year, to I'll Satish the rate effective expenditures and be $XX XX%. $XX it our pass expense to closing tax be interest back For approximately approximately total to now be to

Satish Malhotra

pleased Jeff. with results strong the we In we are in have closing, you, delivered Thank QX.

the the of coming X/XX/'XX big quarters XX% is squarely outstanding. to in loyalty the services transform operator launching app. campaign three will when event achieved In solutions, year and of XXXX Closet fully nearly organizing finish now are fiscal strong. on prepared the questions. with program quarter, ending believe over which lines our integration new fiscal consecutive have we Elfa the we branding the to and concludes remarks. our in in-home custom Works, growth with to be XXXX I our compared leader turn to well, continue We the This on and mobile and focused the making fiscal closets splash our for open We will we intend call to

Operator

question Instructions] [Operator the line Steven from comes with Our Forbes Securities. first of Guggenheim

your with question. proceed may You

StevenForbes

we optimism of in of anything secular seeing question color out-year trends, second sort customer whether to sort to what in business. rates, evening. repeat customer seeing category maybe that your the thinking for trends, love data cycle seeing Really what the as Curious hear start. data. high-level the you Any expand half reengagement you're Good the on just supports in it's Satish, a you're the just participation data, would what you're in right, compares. the growth on

Satish Malhotra

is you extremely very our I e-commerce know, hard we've us would focusing that say, half much of year, indicative our for foundational to growth we priorities. taken improve What of the a XXXX existing the much while right? As worked and back all on business stores which work fiscal productivity was very is the during Sure. Steve,

continuing rightsizing we we've to started to taken half our of see so half. very achieve kind a in as disciplined have the much the some And those in and first operating that approach our model of of benefits results and second obviously

specialist and obviously well. reminder, we'll in-store the that a worked XXXX through and improving discovery second really So half hard as half continue into that in our into of fiscal continues engagements experience first areas we as

we've the and was visible and the on making that assortment full definitely was second obviously for to particular, at that really of about performing, functionalities half ship we improvements over us closets well. seeing improved kitchen, fiscal and sure able in able engage been which and and how of core customers our features as change improved store impressed how second the leverage half our and being payment e-commerce additional when of benefits options, big XXXX made into experience with our a our I'm in times to All we're that continues And through the also and we at front that's think storage with that, XXXX. price. into

think the first I effort and we've that our the when customer foundational with customers. at that in high. then Engagement the So about work average getting pleased high, engagement the looking that from in response year undertaken half, conversion second is we're half, ticket high, we're really is that is

fantastic course, XXXX to fully Closet to to a our and, on app going You fiscal I loyalty see we're the XXXX. that in And importantly, fiscal that you more and merchandise consideration when about Closets for new opportunity our well foundational into branding work our this we from the campaign welcome us in X/XX/'XX. of that our both all works. capitalize new customers in be new And the we've supercharge into launching then a think consistency new and as as launch, with mobile general leveraging done performance bodes acquisition program business. to now to year, well, ability the take including we'll our the ability benefit invite business you look results our Custom our think results, on organization into really It's and

level. at high that's very a So

for into and While what's fiscal extremely importantly, back we excited more about XXXX. happening half be the continue to

Steven Forbes

anything the if I levels as follow-up the profitability the should for prior fourth appreciate over margin And all more has time we for just anything gross or of any then could gross of -- about profile of of to sort know right, to rate? quarter. sort within see of the we expect outlook that that in profile quick Jeff. The revisit, the you margin -- business, changed Or product? don't of color. structurally terms margin segment the Elfa, I And gross guidance of importantly, maybe a think longer-term provide

Jeff Miller

the Yes, that as directly the certainly, related they relates Steve. than their forward, and have it's Elfa margins pricing, Listen, decline with to it to gross headwinds looking commodity really would and side associated perspective. in that direct has the outward, I QX. But looking to material expect don't And anything -- would structurally also customer expect think mix continue changed. I a into I felt on

front. it will future; normalized that concern the to back go think I not more in there's any on margins

Steven Forbes

Best you. of luck. Thank

Operator

McShane Our the of next Sachs. Kate comes Goldman question with line from

your You may proceed with question.

KateMcShane

question Hi, business, just afternoon. that anyone general were you the it more quarter. imagine organizational entering competitive of or I first to closet My the came And was extremely thanks. Good it environment. last if the seeing category when just about in wondered exiting merchandise I that's fragmented.

Just acquisition? the scale plan share do opportunity there? to And you Closet how what's the Custom

Satish Malhotra

Yes. the question. Kate, thank you for

so many indicative are out look, into we fact there So of frankly, first that people of to seeing competitors it's it the storage with And just they how start. that there don't other are is, are part think clutter. enter just the quite organizational market. overwhelmed the actually know I

navigate around thankfully, our how the including X,XXX that go Now to specialists best the people purchase. would sustainability, storage, mentioned they organization highly to and that are dedicated have utilize we XX,XXX SKUs items SKUs to help coupled I trained with

doing XXx from about And doing wood-based our we regional so were cater I to Closets Closet five When new business, think And diligent to any be is through you at the matter about Works, the haven the in tell custom to $X business. it because I you And that positioned mean, able player right. are volume we're absolutely can we there as fragmented know, closets for safe extremely to work combined. is any out you're they an a the it what that addressable customers I Custom billion. with did were well even we than extremely TCS market stores channel that in comes coming in them. for Chicago,

we've quite the been money selling with And working I modular Of assortment extremely on premium including have designers. offering $X our markets, a doing to to coupled we think table. offer speak, over that that And really dedicated so our races, us foundational spaces. much to during are this them, that and in highly the our these And and deeper that clearly, great known think purchases off system, really to bodes -- well -- variety regional sales think stores, well. regional now for now So a our for I comfortable we're we we to go Elfa's now product thanks ensure with with that that Custom fragmented in leaving our year assortment XX-plus Work's as Closet penetration Wood are superior how one, backs of the this coupled business. quality customers We we product we with after our market are million X/X we're those designers about in have, frankly, which that's of as to acquisition, almost offerings that: hard date. about warranty

Kate McShane

for and the going program those follow-up of more ask comp what Maybe could some I benefits about going the entail? follow-up that lift just few sign mentioned just if And I be question. that's unrelated loyalty -- you launching And it program? could for us any what loyalty later. a that's what know the mean details retention? for customer one you around to Could give are to up thoughts

Satish Malhotra

of a Yes. remarks. new out with program. with today about is we look, are the that in program, our of more at not providing customers mentioned really intent in, us We're only our [ph] attract to excited Unfortunately, But tier-based members are that reward equally on it. customers you XX.X it those wait to new details program engaging a day day is lot are who It million this basis. really but out as this a earlier there our not have learn stage around like

ability to their have the And that of by active we that unveiled objectives our of improve spend. 'XX of can improve an [indiscernible] that. program will ensure the members, will think be the our fiscal on the including satisfy We rate frequency end their I visits,

program. do can it today, layer some to forefront think more have I So additional the super Amazingly, is much to our about stickiness of excited start to of lot this so bring ability that with that benefits program consumers. we we around as on to there quite we but a the our

Kate McShane

Thank you.

Operator

Our Chris last the comes of from question Horvers JPMorgan. with line

You may with question. your proceed

ChrisHorvers

evening. Thanks. Good

this And that you've the So different any growth following maybe about rates, Custom about tend is think you Does of think overall a plus geographic you on Custom Closets correlated terms is done sense remodel plus, anything pretty has increase in sort as up X% market, cycle? what like housing home of of seen like what move historically of kind to your suggest as a something with is like business on parts the it that in Kate's sort footprint there GDP spending? And this in business? Closets market? the and the to question; like the repair housing improvement or would in of

Satish Malhotra

tell just spaces are that able benefit individuals lot their spaces. the we're are of would I to frankly, -- what is, results we not fully like, there There's you What Chris, a are out fact quite Yes. look, index. awareness tell from is the our you but not any particular predicated those they aware I necessarily and transform correlated to will on factor. that

over while get so and with if anywhere Custom last you to we're front our And at offer look growth to getting able in real their from And as for estate well. their them they not the see their to should quarters in as community also over because XX% home get it ever their homes. the customers and when able three that will but return large sell at only performance hear our that they're want what ability is been the the to from an utilize really space, to hit pay they our and investment we really business definitely XXXX, dividends we've to it Closets of comfortable in where in get home

at not on looking so necessarily indicators And that. we're depending external

in as boost how and completion the to that not to I ultimately, to it's the life frankly, not kind customers additional they the enjoy for transformational really offer moment and can us for energy. of or their because them motivation see think, it improvements spaces how of space only actually we able be they and aware but that quite that it educate these benefits really impacts be offer they're a the these we start necessarily and and products

great an well-being those across with benefits of All that come organized space.

we're and to well on understand organization people Because So we campaign our there's objective. huge safe the can for That's X/XX/'XX. as frankly, how opportunity launching place a just our that's of haven quite help benefits be that them.

Chris Horvers

every Got homes. closet our lot really in pandemic, importance. of up went single organization home a it. And clearly, We the during through took certainly

quarter, a and you as anniversary basis? -- fourth all like to but pandemic, about the you you do not the start locked from look beyond away compare of opportunity the sort the the think terms two year-over-year as will period with marketing the getting year where down. sort also on of And we're that grow of of business customer to hiring just on expect just the So in difficult closets

Satish Malhotra

much Closet Works, if a of to us 'XX foundational and we're Custom feel and happened the call. offer position of obviously we Of of awareness year on now year. about mean, to look about that we'll I to to fully is what any details yet, next double Custom ready that work us, year, kind now haven't do annualized we acquisition we tell capitalize as was you for it. XXXX which is our what year 'XX year mentioned about to a and think around we're the of have lot also Closets on fiscal What acquisition Closets. get bring that on the this listen, in -- comfortable we poised 'XX is was the that really quarterly foundational a earlier when for with very our down fully in I provided XXXX throughout And of better I doing can and

-- much in place it's to we it's put and than out really on So bigger essentially way execute in in there get much a 'XX. that have us foundational pillars the to we

Chris Horvers

very it. much. Got Thanks

Operator

we call to this I turn remarks. like closing reached have would in session. at question-and-answer today's and Ladies gentlemen, for back over Satish to

Satish Malhotra

and Great. The results Store Well, year. you story. fiscal full and discuss continuing again forward today then, I QX us Until thank goodnight. and for thank review when to you for follow growth Container our look, look our we joining to

Operator

conference. today's concludes This

of You participation your you your disconnect lines enjoy for may this your day. Thank at rest the time. and

The Container Store Group, Inc. (TCS) 9 Feb 222021 Q3 Earnings call transcript