Five Below tumbles on CEO transition, Q2 sales forecast cut

Five Below

17/07/2024 12:16

(Updates)
    ** Shares of discount store operator Five Below  FIVE.O 
fall ~16% to $85.85 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
    ** Telsey Advisory Group cuts PT to $120 from $155, citing
uncertain consumer spending, increased competition, and lack of
hot trends and product newness
    ** Citigroup cuts rating to "neutral" from "buy", lowers PT
to $92 from $175
    ** Beyond the near-term, we see risk to management cutting
long-term store growth targets - Paul Lejuez, analyst with
Citigroup
    ** Fourteen brokerages rate the stock "buy" or higher and 10
"hold"; their median PT is $122 - LSEG
    ** Up to Tuesday's close, stock has fallen 52.1% YTD

 (Reporting by Roshan Abraham and Anuja Bharat Mistry in
Bengaluru)
 ((Roshan.Abraham@thomsonreuters.com))