Shares of The Container Store jump after business update, new CEO announced

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Shares of Container Store Group Inc. jumped nearly 6% in Tuesday premarket trading after the storage- and organization-focused retailer gave an upbeat preview of third-quarter earnings. The quarter is “tracking well ahead of expectations,” the company said, and is en route to a sales increase in the high teens. Adjusted earnings per share are expected to be in the range of 35 cents to 40 cents, up from 5 cents last year. The FactSet consensus is for sales of $245.8 million, suggesting a 7.5% year-over-year rise, and the EPS consensus is 21 cents. Container Store also announced that Satish Malhotra will succeed Melissa Reiff as chief executive of the company, effective Feb. 1, 2021. Reiff will retire from the company on March 1, 2021, though remain chairwoman of the board until the annual shareholders meeting in the summer. Malhotra was most recently the chief retail and operating officer at beauty retailer Sephora. Container Store stock has soared in 2020, up 137.2%, while the S&P 500 index has gained 14.4% for the period.
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