Container Store’s largest shareholder just downsized its investment in the retailer, sending its shares tumbling more than 5 percent.
Leonard Green & Partners has sold 5 million shares in the Coppell, Texas-based home- and office-furnishings chain, representing 9.9 percent of the company’s outstanding shares, according to a regulatory filing.
The private equity firm, which did not immediately respond to a request for comment, still holds 15.8 million shares.
The company has gotten a boost from the work from home trend during the past year, with sales up 20.5 percent to $275.5 million in the most recent quarter ended Dec. 26. Profits were $19.7 million compared with $2.4 million a year ago.
Its stock, which has risen nearly 62 percent over the past three months, was recently off 4 percent at $15.11.
Container Store hired a new chief executive a year ago — Satish Malhotra — who hailed from Sephora and became the retailer’s first CEO from outside the company in February.