The Container Store has named a replacement for outgoing CEO Melissa Reiff, who told CNBC’s Jim Cramer Tuesday that she is optimistic about the transition.
Satish Malhotra, a veteran executive of personal care retailer Sephora, is set to begin leading the storage and organization products 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 stay on as chairwoman, said in a “Mad Money” interview. “We’re in a perfect spot.”
Reiff, who took over as CEO in the summer of 2016, touted the company’s efforts to achieve its strategic initiatives, saying that the specialty realty doubled down on custom closets and online operations.
In announcing the transition, The Container Store revealed that the company is beating its own expectations thus far in the current quarter. The retailer now expects sales in the 2020 fiscal third quarter to climb in the high teens. The company reported $228.7 million of revenue in the year-ago quarter.
“We’ve just got things working for us and I just could not be happier,” Reiff said on CNBC.
Malhotra comes to The Container Store after serving most recently as chief retail and operating officer for Sephora, a company he worked for more than two decades. He joined Sephora as one of its first executives when the French retailer opened shop in the U.S., the press release said.
When asked if Malhotra would continue expanding the company’s footprint, Reiff said she is hopeful.
“I think the growth strategy, it will be part of his plan, absolutely. I mean 93 stores, Jim,” she said. “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 close at $12.04. The stock is up 185%.