Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why The Container Store Stock Popped Today

By Evan Niu, CFA - Dec 22, 2020 at 12:54PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The organization and storage specialist names a new CEO and says the fiscal third quarter is going better than expected.

What happened

Shares of The Container Store ( TCS -3.46% ) have popped as much as 22% after the company announced a new CEO and provided an update regarding the business. As of 12:30 p.m. EST, the stock was still up 11%.

So what

The Container Store named Satish Malhotra as its new CEO, effective on Feb. 1, replacing current chief executive Melissa Reiff. The current leader has served as CEO since 2016 and will retire on March 1 but remain as Chairwoman of the Board until the consumer discretionary company's annual meeting this summer. Malhotra was most recently the Chief Retail and Operating Officer of LVMH's Sephora and has decades of experience in the retail industry.

Green stock chart going up

Image source: Getty Images.

"Satish is a seasoned retail executive, with decades of diverse and valuable experience, who I believe 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 enjoying the success of the multi-year sales and profit revitalization efforts that have driven, and are expected to continue to drive our performance."

Now what

The Container Store said that the fiscal third quarter was "tracking well ahead of the expectations." On the earnings call in October, management issued an outlook that called for revenue to "modestly exceed the 5% growth" that the company reported for the fiscal second quarter. The company is now expecting fiscal third-quarter sales to increase in the "high teens range," which should result in adjusted earnings per share of $0.35 to $0.40.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Container Store Group, Inc. Stock Quote
The Container Store Group, Inc.
$11.15 (-3.46%) $0.40
LVMH Moët Hennessy - Louis Vuitton, Société Européenne Stock Quote
LVMH Moët Hennessy - Louis Vuitton, Société Européenne
$154.78 (-0.86%) $-1.34
LVMH Moët Hennessy - Louis Vuitton, Société Européenne Stock Quote
LVMH Moët Hennessy - Louis Vuitton, Société Européenne
$776.92 (-0.90%) $-7.08

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/03/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.