Shares of The Container Store (NYSE:TCS) 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%.
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.
"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."
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.