Five Below Stock Is Falling: What's Going On?
Portfolio Pulse from Adam Eckert
Five Below Inc (NASDAQ:FIVE) shares fell after-hours following the announcement of a CEO transition and updated guidance for Q2. Joel Anderson stepped down as CEO, with COO Kenneth Bull named interim CEO. The company reported a 9.5% increase in total sales for the 10 weeks ending July 13, but a 5% decline in comparable sales. Five Below now expects Q2 sales between $820 million and $826 million, with a 6% to 7% decrease in comparable sales and diluted income per share between 53 cents and 56 cents. Shares dropped 9.34% to $92.53.
July 16, 2024 | 8:37 pm
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NEGATIVE IMPACT
Five Below shares fell 9.34% after-hours following the announcement of a CEO transition and updated Q2 guidance. The company reported a 9.5% increase in total sales for the 10 weeks ending July 13, but a 5% decline in comparable sales. Q2 sales are expected between $820 million and $826 million, with a 6% to 7% decrease in comparable sales and diluted income per share between 53 cents and 56 cents.
The CEO transition and updated guidance indicating a decline in comparable sales and lower-than-expected earnings per share have negatively impacted investor sentiment, leading to a significant drop in the stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100