The Reject Shop Ltd (ASX: TRS) share price is soaring today amid a new appointment by the company.
The retail company’s shares are currently swapping hands at $3.42, a 20% gain. For perspective, the S&P/ASX 200 Index (ASX: XJO) is rising 0.53% today.
So what news is driving the Reject Shop share price higher today?
The Reject Shop has named Phillip Bishop as the company’s new CEO. He will commence in the role on 11 July and will receive $650,000 per year.
Bishop has 30 years of experience in retail, including senior roles at Bunnings and Office Works.
The Reject Shop noted Bishop has delivered sustained growth in these roles through his focus on the needs of customers.
The company said it is now “well positioned” with a lower cost base and talented senior leadership team.
Commenting on the news, chairman Steven Fisher said: “As the company transitions into the ‘grow’ phase of the turnaround strategy, I am confident that Phil is the right person to lead the company.”
In response, Bishop thanked the board for the appointment and outlined his growth plans for the company. He said:
In my view, there is a significant opportunity to grow The Reject Shop through better understanding its customers, continuing to evolve the product offering and continuing to expand the store network.
Capital management update
The Reject Shop share price could also be gaining on the back of the company’s capital management update.
It said it is continuing to trade consistently with management expectations and broker consensus in FY22. In financial results delivered in February, the Reject Shop did not provide a specific guidance for FY22. However, the company outlined plans to open 15 new stores and close four.
The company plans to deliver FY22 results in late August after the completion of an audit.
The Reject Shop is also looking into conducting an on-market share buyback. If the board proceeds with this, shareholders will be informed next month or in August.
Reject Shop share price snapshot
The Reject shop share price has dived 39% in the past year, while it is falling nearly 54% year to date.
For perspective, the benchmark ASX 200 has descended 10% in a year.
In the past month, the company’s shares have fallen more than 9%, while they are down 5% in the past week.
Reject shop has a market capitalisation of about $125 million based on the current share price.