Shares of the Dallas retailer at last check were 12% higher at $11.20.
Container Store, which started up in 1978, retails storage, organization products, and solutions designed to help customers make the most of their home spaces.
Fiscal Q3 results "are tracking well ahead of the expectations" the company had during its second-quarter earnings call in October, the company said in a statement.
Adjusted earnings per share should range 35 cents to 40 cents compared with a nickel a share in the year-earlier period. Sales should rise in the high-teens percent.
Reiff will retire as president and CEO and continue as chairwoman through the annual meeting in late summer.
The transition comes, Reiff said, amid Container Store's "multiyear sales and profit revitalization efforts that have driven, and are expected to continue to drive, our performance.”
Malhotra most recently was Sephora's LVMUY chief retail and operating officer. He joined the company 21 years ago and was one of the cosmetics retailer's first executives.
“I have long admired" Container Store, its "leadership position in the storage and organization niche, as well as their quest for custom closet domination that I believe is well underway,” Malhotra said.