These Analysts Slash Their Forecasts On Five Below

Author: Avi Kapoor | July 17, 2024 08:55am

Five Below Inc (NASDAQ:FIVE) announced a CEO transition and provided updated guidance for the second quarter on Tuesday.

Five Below announced that Joel Anderson stepped down from his roles as president and CEO to pursue other interests. Anderson will also step down from the company's board.

COO Kenneth Bull has been named interim president and CEO, effective immediately. Five Below co-founder, non-executive chairman and former CEO Thomas Vellios will assume the role of executive chairman on an interim basis to support the executive leadership team while the board looks for a permanent CEO.

Five Below also announced that total sales for the 10 weeks ending July 13 increased 9.5% on a year-over-year basis, but said comparable sales fell 5%. As a result, the company now expects second-quarter sales of $820 million to $826 million and anticipates a 6% to 7% decrease in comparable sales. Diluted income per common share is expected to be in the range of 53 cents to 56 cents per share.

Five Below shares gained 2.1% to close at $102.07 on Tuesday.

These analysts made changes to their price targets on Five Below after the company made the announcements.

• Morgan Stanley analyst Simeon Gutman downgraded Five Below from Overweight to Equal-Weight and lowered the price target from $160 to $100.
• Truist Securities analyst Scot Ciccarelli downgraded the rating on the stock from Buy to Hold, while lowering the price target from $136 to $89.
• Evercore ISI Group analyst Michael Montani downgraded Five Below from Outperform to In-Line, while cutting the price target from $160 to $113.
• Mizuho analyst David Bellinger downgraded the rating for Five Below from Outperform to Neutral and slashed the price target from $150 to $85.
• B of A Securities analyst Melanie Nunez maintained the stock with a Neutral rating, while cutting the price target from $125 to $104.

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Posted In: FIVE