What happened
Actions of The container store (NYSE: TCS) jumped to 22% after the company announced a new CEO and provided an update on the company. As of 12:30 p.m. EST, the headline was still up 11%.
So what
The Container Store has appointed Satish Malhotra as its new CEO, effective February 1, replacing current CEO Melissa Reiff. The current executive has been CEO since 2016 and will retire on March 1, but will remain chair of the board until the consumer discretionary company’s annual meeting this summer. Malhotra was most recently the Director of Retail and Operations at LVMH‘s Sephora and has decades of experience in the retail industry.
Image source: Getty Images.
“Satish is a seasoned retail executive, with decades of diverse and valuable experience, which I think will be a great fit for our organization,” Reiff said in a statement. “The timing of this leadership transition could not be better, with our company benefiting from the successful multi-year sales and earnings revitalization efforts that have motivated and should continue to drive our performance. “
Now what
The Container Store said the fiscal third quarter “is going well ahead of expectations.” When the results were announced in October, management released an outlook that predicted revenues “to slightly exceed the 5% growth” announced by the company for the fiscal second quarter. The company now expects fiscal third quarter sales to increase in the “high teens lineup,” which should translate into adjusted earnings per share of $ 0.35 to $ 0.40.
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