The Container Store Group (TCS) reports its FQ1 ’15 results after market close on Tuesday. Wall Street is predicting a large fall in EPS QoQ to reach a negative value of -$0.05 and a revenues number of $203.5M. The Estimize community are expecting EPS of $0.00 and revenues to come in at $196.64M.

Since debuting on the New York Stock Exchange in 2013, The Container Store’s share price has fallen circa 54.34%. A major concern for investors is that the retailer has struggled to stimulate sales growth as competitors offer discounts to steal market share. Management have recently announced a strategy in which they aim to capitalize on social media to drive sales and to also offer financing arrangements and in-home consultants as a way to differentiate themselves from their competitors.

Despite management’s optimism, investors are cautious leading into the upcoming result for a number of reasons; rigorous cost cutting by competitors, a strengthening US Dollar and poor weather conditions have all limited the company’s ability to increase same-store sales QoQ. Disappointing same-store sales growth is possibly the greatest concern for investors leading into Tuesday’s result. During FQ4 ’14, The Container Store reported a negative same store sales of -0.8%. If the result on Wednesday delivers another negative same-store sales growth figure, it will mark the fifth consecutive quarter of negative growth.  

With expectations so low for the upcoming report, any positive surprise could have a material impact on the company’s share price. This report provides an opportunity for management to deliver a better than expected report and supply investors with some optimism. The Container Store is currently trading on a PE multiple (TTM) of 37.34X earnings which is near its average of 36.62X.