Five Below tumbles on CEO transition, Q2 sales forecast cut

Five Below

17/07/2024 09:53

** Shares of discount store operator Five Below  FIVE.O 
fall 14.6% to $87.1 premarket
    ** Co said on Wednesday CEO Joel Anderson has stepped down;
Kenneth Bull named interim CEO, effective immediately
    ** Expects Q2 sales of $820 mln-$826 mln vs $830 mln-$850
mln forecast earlier
    ** Jefferies cuts PT to $140 from $180; notes lower-income
consumer pressures and theft or shrink related headwinds
continue to hinder performance
    ** "While we believe these issues are more cyclical than
structural share performance is likely to remain range-bound as
investors begin to discover a floor for share valuation" -
Jefferies
    ** However, brokerage thinks stock's current levels
represents an attractive buying opportunity for long-term
investors
    ** Avg rating of 24 brokerages is "buy"; median PT is $145 -
LSEG data
    ** Up to Tuesday's close, stock has fallen 52.1% YTD

 (Reporting by Roshan Abraham)
 ((Roshan.Abraham@thomsonreuters.com))