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The Reject Shop Ltd (ASX: TRS) the stock price soars today on a new appointment by the company.
Shares of the retail company are currently trading at $3.42, a gain of 20%. For perspective, the S&P/ASX 200 Index (ASX:XJO) rose 0.53% today.
So what news is driving Reject Shop stock price higher today?
The Reject Shop has named Phillip Bishop as the company’s new CEO. He will take office on July 11 and will receive $650,000 a year.
Bishop has 30 years of retail experience, including senior positions at Bunnings and Office Works.
The Reject Shop noted that Bishop has achieved steady growth in these roles by focusing on customer needs.
The company said it was now “well positioned” with a lower cost base and a talented management team.
Commenting on the news, Chairman Steven Fisher said: “As the company moves into the ‘growth’ 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 by better understanding its customers, continuing to evolve the product offering, and continuing to expand the store network.
Capital Management Update
Reject Shop’s stock price could also rise thanks to the company’s capital management update.
It said it continued to trade in line with management expectations and broker consensus in FY22. In financial results released in February, the Reject Shop did not provide specific guidance for the 22. However, the company announced plans to open 15 new stores and close four.
The company expects to deliver FY22 results at the end of August after completing an audit.
The Reject Shop is also considering a market buyback. If the board does this, shareholders will be notified next month or in August.
Reject Shop stock price snapshot
Reject shop’s stock price has fallen 39% over the past year, compared to falling almost 54% since the start of the year.
As a reminder, the benchmark ASX 200 index fell by 10% in one year.
Over the past month, the company’s shares have fallen more than 9%, while they were down 5% last week.
Reject shop has a market capitalization of approximately $125 million based on the current share price.