Bear Of The Day: The Container Store Group, Inc.

The Container Store Group, Inc. ()  stock has plummeted over 85% in 2024 alongside its tumbling earnings outlook.The Container Store Group’s recent drop is part of a massive decline over the last roughly 10 years that was only interrupted a few times.   The Container Store Group 101The Container Store Group is a retail giant focused on containers, as its name suggests. The company is focused on what it calls organizing solutions, custom spaces, and in-home services, aiming to “transform lives through the power of organization.”The Container Store Group’s revenue has dropped off a cliff in the last few years after climbing between FY14 to FY22, capped off by strong covid-based growth. TCS’s revenue is projected to drop -10% in its FY24 and another -3% next year.Image Source: Zacks Investment ResearchThe company in early October received a financial lifeline from Bed Bath & Beyond owner Beyond. TCS said on Oct. 15 that it entered into agreement with Beyond, Inc. to invest $40 million in The Container Store Group, Inc. through a preferred equity transaction.The deal came roughly five months after The Container Store said it was launching a strategic review of its business. The Container Store Group said in August it would stop providing financial guidance as it evaluated strategic alternatives amid a challenging environment.The company reported an adjusted Q2 FY24 loss of -$3.23 a share on October 29, falling well shy of our Zacks estimate. The Container Store Group’s earnings outlook has dropped since its recent release, helping it land a Zacks Rank #5 (Strong Sell).Image Source: Zacks Investment ResearchThe Bottom Line on The Container Store Group StockThe Container Store Group is projected to post an adjusted loss of -$6.36 per share in its FY24 and -$7.90 in its FY25. TCS stock has lost most of its value over the past decade.It is likely wise for investors to stay away from The Container Store Group stock until it proves a viable turnaround is possible in the near future. More By This Author:Bear Of The Day: Avis Budget Group, Inc. 3 Growth Tech Stocks To Buy And Hold: VRT, SPOT, APPFBull of the Day: Willdan Group, Inc.