Five Below tumbles on downbeat 2024 forecasts

Five Below

21/03/2024 10:10

** Shares of discount store operator Five Below  FIVE.O 
down ~13% at $182 premarket
    ** Co on Wednesday projected downbeat 2024 profit, revenue
hurt by higher retail shrink trends - where inventory is either
lost or damaged due to theft and breakage   
    ** FIVE also missed Q4 sales and profit estimates, hit by
unfavorable climatic conditions in January   
    ** "Our prior expectations assumed that our mitigation
efforts would result in a reduction of the shrink rate," said
CEO Joel Anderson, noting the rate was higher-than-anticipated 
    ** At least three brokerages trimmed their PTs following
results
    ** "What's clear to us is near-term business conditions have
become more volatile and consumer headwinds are growing,
particularly around the low end," Jefferies says in a note
    ** YTD, FIVE is down nearly 2% as of last close     


 (Reporting by Granth Vanaik in Bengaluru)
 ((Granth.Vanaik@thomsonreuters.com; Twitter: https://twitter.com/Vanaik_Granth;))