The Container Store Group, Inc. (NYSE:TCS) Q2 2020 Earnings Conference Call - Final Transcript

Oct 20, 2020 • 04:30 pm ET

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The Container Store Group, Inc. (NYSE:TCS) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to Container Store Second Quarter 2020 Earnings Conference Call. [Operator Instructions] A question-and-answer session will follow the formal presentation. [Operator Instructions]

I would now like to turn the conference over to Caitlin Churchill.

Executive
Caitlin Churchill

Good afternoon, everyone, and thanks for joining us today for The Container Store's second quarter fiscal year 2020 earnings results conference call. Speaking today are Melissa Reiff, Chairwoman and Chief Executive Officer; and Jeff Miller, Chief Financial Officer. After Melissa and Jeff have made their formal remarks, we will open the call to questions.

Before we begin, I need to remind you that certain comments made during this call regarding our plans, strategies, expectations regarding liquidity and goals, our anticipated financial performance and our plans in response to COVID-19 and the potential impact of COVID-19 on our business may constitute forward-looking statements and are made pursuant to and within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements. Those important factors are referred to in The Container Store's press release issued today, and in our Annual Report on Form 10-K, filed with the SEC on June 17, 2020. The forward-looking statements made today are as of the date of this call, and The Container Store does not undertake any obligation to update their forward-looking statements.

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

I will now turn the call over to Melissa. Melissa?

Executive
Melissa Reiff

Thank you, Caitlin, and welcome, everyone, to our Q2 earnings release call. We appreciate you joining. I would like to welcome Jeff to his first earnings call as Chief Financial Officer, and also mentioned that Jodi Taylor is here with us as well today. I will first discuss the highlights of our fiscal Q2 performance and then as always, I'll provide an update on our strategic priorities, including our very exciting brand partnerships that we highlighted in our press release today. Jeff will then review our financial results in detail, followed by Q&A.

We are very proud of our second quarter financial results, which we believe reflects the combination of our many efforts over the last few years and that is to reinvigorate our business and execute our strategic priorities. We believe that we have done this with excellence and determination, positioning us to benefit from the industry tailwinds created from the stay-at-home environment, we remain in today. For the quarter, we reported consolidated net sales growth of 5% driven by sales at The Container Store, as our Elfa third-party net sales were flat to the prior year.