Five Below tumbles on CEO transition, Q2 sales forecast cut

Five Below

17/07/2024 15:24

(Updates)
    ** Shares of discount store operator Five Below  FIVE.O 
down as much as 20% at $81.80 - lowest since May 2020
    ** 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
    ** If losses hold, stock set for worst day since March 2020
    ** 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
    **  We are disappointed by the abrupt departure of CEO Joel
Anderson and the reduced 2Q24 guidance on softer sales - Joseph
Feldman analyst with Telsey Advisory Group
    ** Citigroup cuts rating to "neutral" from "buy", lowers PT
to $92 from $175
    ** Fourteen brokerages rate the stock "buy" or higher and 10
"hold"; their median PT is $122 - LSEG
    ** Including session moves, FIVE down ~59% YTD

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