Revenue during the quarter went up marginally by 0.32 percent to $205.06 million from $204.41 million in the previous year period. Gross margin for the quarter contracted 14 basis points over the previous year period to 57.72 percent. Total expenses were 94.99 percent of quarterly revenues, down from 95.15 percent for the same period last year. This has led to an improvement of 16 basis points in operating margin to 5.01 percent.

Operating income for the quarter was $10.27 million, compared with $9.91 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $22.30 million compared with $21.87 million in the prior year period. At the same time, adjusted EBITDA margin improved 18 basis points in the quarter to 10.87 percent from 10.70 percent in the last year period.

Melissa Reiff, Chief Executive Officer, stated, "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 and now in early third fiscal quarter, as we have encountered more comparable cadence of merchandising campaigns and promotional activities. Our 2016 SG&A savings program is gaining traction as evidenced by the leveraging of expenses in a challenging sales environment. This commitment to strong cost discipline drove SG&A efficiencies and contributed to EPS of $0.07."

For fiscal year 2016, Container Store Group, Inc forecasts revenue to be in the range of $820 million to $830 million for fiscal year 2016. The company expects diluted earnings per share to be in the range of $0.20 to $0.30.