Container Store ( TCS ) shares are trading higher in the premarket session on Tuesday. The company reported fourth-quarter sales of $206.04 million, down 20.7% year over year. Quarterly sales beat the analyst consensus of $204.30 million.

“We believe we still have attractive growth opportunities in key markets and plan to open four new stores in fiscal 2024, as well as relocate one store and close one store,” the company said in a press release.

Net sales in the Container Store ( TCS ) retail business slumped 20.4%. Online sales decreased 30.8% year over year. Comparable store sales decreased 21.8%, with general merchandise categories down 26.7%.

Consolidated gross margin was 59.4%, an increase of 50 basis points year over year. Adjusted EBITDA was $15.4 million, lower than $29.2 million in the year-ago period.

As of March 30, the company store base was 102, as compared to 97 as of April 1, 2023.  The company opened two stores during the quarter under review.

Adjusted net loss per diluted share was $(0.04) for the fourth quarter, above the consensus of $(0.12).

Review of Strategic Alternatives – No Guidance

Today, the company is announcing that its board of directors has initiated a formal review process to evaluate strategic alternatives for the company.

“We have established the Transaction Committee to help oversee the process to ensure that we are maximizing both the potential of the business and returns for stakeholders,” said Lisa Klinger, Chairperson of The Container Store ( TCS ).

As the company evaluates strategic alternatives, it is suspending financial guidance.

Price Action: TCS shares are trading higher by 12.5% to $0.99 premarket at last check Tuesday.