The Container Store has named a substitute for outgoing CEO Melissa Reiff, who advised CNBC’s Jim Cramer Tuesday that she is optimistic in regards to the transition.
Satish Malhotra, a veteran government of non-public care retailer Sephora, is about to start main the storage and group merchandise retailer, come February.
“There’s never a perfect time to pass the reins, but it just felt as perfect as it can get right now, and I’m so excited for Satish to be joining our company and leading our company,” Reiff, who will keep on as chairwoman, stated in a “Mad Money” interview. “We’re in a perfect spot.”
Reiff, who took over as CEO in the summer time of 2016, touted the corporate’s efforts to realize its strategic initiatives, saying that the specialty realty doubled down on customized closets and on-line operations.
In asserting the transition, The Container Store revealed that the corporate is thrashing its personal expectations so far in the present quarter. The retailer now expects gross sales in the 2020 fiscal third quarter to climb in the excessive teenagers. The firm reported $228.7 million of income in the year-ago quarter.
“We’ve just got things working for us and I just could not be happier,” Reiff stated on CNBC.
Malhotra involves The Container Store after serving most lately as chief retail and working officer for Sephora, a firm he labored for greater than twenty years. He joined Sephora as one in every of its first executives when the French retailer opened store in the U.S., the press launch stated.
When requested if Malhotra would proceed increasing the corporate’s footprint, Reiff stated she is hopeful.
“I think the growth strategy, it will be part of his plan, absolutely. I mean 93 stores, Jim,” she stated. “Certainly, the run rate is incredible, but I think it’s finding the right locations and opening the right size store, and I hope and I feel confident that will be part of his plan.”
Shares of The Container Store surged 20% on Tuesday to shut at $12.04. The inventory is up 185%.