Shares of The Container Store (TCS) rose 4.61% to $5.22 in after-hours trading on Wednesday after the company gave full-year guidance that largely topped analysts' expectations.
Fiscal 2016 earnings per share are projected to be between 20 cents and 30 cents. The specialty retailer of storage products now sees full-year revenue between $820 million and $830 million, down from its prior view of $830 million to $845 million, but mainly above Wall Street's forecasts.
Analysts are looking for earnings of 21 cents per share on revenue of $824 million for fiscal 2016.
For the 2016 fiscal second quarter, the Container Store posted earnings of 7 cents per diluted share, which topped the FactSet consensus estimate by a penny.
But the Container Store said comparable-store sales fell 4.2% during the most recent period. Wall Street was forecasting a decline of 3.5%, according to FactSet. Revenue increased 0.3% to $205.1 million year-over-year, but was below analysts' projections of $207.0 million.
"We are pleased with our earnings performance in the second fiscal quarter of 2016. And while there is still work to be done to drive consistent growth in top line performance, we experienced improving sales trends in September," CEO Melissa Reiff said in a statement.
Comparable-store sales for fiscal 2016 are now expected to decline between 1.5% and 3.0%, lower than the company's previous outlook for an increase of 0.5% to a decrease of 1.5%.
The stock is down about 39% year-to-date.