THE CONTAINER STORE GROUP,INC. (NYSE:TCS) Files An 8-K Results of Operations and Financial Condition
Item 2.02. Results of Operations and Financial Condition.
On May23, 2017, The Container Store Group,Inc. (the Company)
announced its financial results for the quarter and full year
ended April1, 2017. The full text of the press release issued in
connection with the announcement is furnished as Exhibit99.1 to
this Current Report on Form8-K.
The information in Item 2.02 of this Form8-K (including
Exhibit99.1) shall not be deemed filed for purposes of Section18
of the Securities Exchange Act of 1934, as amended (the Exchange
Act), or otherwise subject to the liabilities of that section,
nor shall it be deemed incorporated by reference in any filing
under the Securities Act of 1933, as amended, or the Exchange
Act, except as expressly provided by specific reference in such a
filing.
Item 2.05. Costs Associated with Exit or Disposal
Activities.
On May23, 2017, the Company announced a four-part plan designed
to optimize its consolidated business and drive improved sales
and profitability (the Optimization Plan), which includes the
elimination of certain full-time positions at the Companys
stores, corporate office and distribution center. The elimination
of certain full-time positions as part of the Optimization Plan
is expected to reduce the Companys annualized selling, general
and administrative payroll-related expenses by approximately $7
million. The Company expects to incur approximately $2million in
cash severance expenses in the fiscal quarter ending July1, 2017,
in connection with the position eliminations.
Item 9.01. Financial Statements and Exhibits.
(d)Exhibits
The following exhibit relating to Item 2.02 shall be deemed to be
furnished, and not filed:
|
Exhibit No. |
|
Description |
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99.1 |
Press Release issued on May23, 2017 |
Forward-Looking Statements
This Current Report contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements contained in this Current Report that do not
relate to matters of historical fact should be considered
forward-looking statements, including statements regarding our
expectations regarding effects of the elimination of certain
full-time positions, including the anticipated reduction in
annualized expenses and the amount of expected cash severance
expenses. These forward-looking statements are based on
managements current expectations. These statements are neither
promises nor guarantees, but involve known and unknown risks,
uncertainties and other important factors that may cause our
actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements,
including, but not limited to, the following: the risk that the
elimination of certain full-time positions will not achieve its
anticipated objectives; cash severance charges may be higher than
currently anticipated; our inability to manage costs and risks
relating to new store openings; our inability to manage our
growth; inability to locate available retail store sites on terms
acceptable to us; our inability to maintain sufficient levels of
cash flow to meet growth expectations; disruptions in the global
financial markets leading to difficulty in borrowing sufficient
amounts of capital to finance the carrying costs of inventory to
pay for capital expenditures and operating costs; fluctuations in
currency exchange rates; our reliance on key executive
management, and the transition in our executive leadership; our
inability to find, train and retain key personnel; labor
relations difficulties;
increases in health care costs and labor costs; our
indebtedness may restrict our current and future operations;
and increased uncertainty with respect to tax and trade
policies, tariffs and government regulations affecting trade
between the United States and other countries as a result of
the recent presidential and congressional elections in the
United States. These and other important factors discussed
under the caption Risk Factors in our Annual Report on Form10-K
filed with the Securities and Exchange Commission, or SEC, on
May10, 2016, and our other reports filed with the SEC could
cause actual results to differ materially from those indicated
by the forward-looking statements made in this Current Report.
Any such forward-looking statements represent managements
estimates as of the date of this Current Report. While we may
elect to update such forward-looking statements at some point
in the future, we disclaim any obligation to do so, even if
subsequent events cause our views to change. These
forward-looking statements should not be relied upon as
representing our views as of any date subsequent to the date of
this Current Report.
About THE CONTAINER STORE GROUP, INC. (NYSE:TCS)
The Container Store Group, Inc. is a specialty retailer of storage and organization products. The Company’s segments include The Container Store (TCS), Elfa and Corporate/Other. The Company’s TCS segment consists of its retail stores, Website and call center, as well as its installation and organizational services business. The Company’s Elfa segment includes the manufacturing business that produces the elfa brand products that are sold domestically, exclusively through the TCS segment, as well as throughout Europe. Its Swedish subsidiary, Elfa International AB (Elfa), designs and manufactures component-based shelving and drawer systems and made-to-measure sliding doors. It merchandises over 11,000 products in each of its stores and online. Its stores are organized into various lifestyle departments, which include Bath, Box, Closets, Collections, Containers, Custom Closets, Food Storage, Gift Packaging, Hooks, Kitchen, Laundry, Office, Shelving, Storage, Trash and Travel. THE CONTAINER STORE GROUP, INC. (NYSE:TCS) Recent Trading Information
THE CONTAINER STORE GROUP, INC. (NYSE:TCS) closed its last trading session down -0.04 at 4.15 with 194,618 shares trading hands.
