The stock of Five Below (FIVE) is down 14% after the discount retailer lowered guidance for its upcoming second-quarter financial results and said that its chief executive officer has resigned.
Five Below said that CEO Joel Anderson has stepped down effective immediately to “pursue other interests.”
The company has named chief operating officer (COO) Kenneth Bull as its interim CEO.
The CEO change was announced along with lowered guidance for Five Below’s pending Q2 financial results.
The Philadelphia-based company said that it now expects Q2 earnings per share (EPS) of $0.53 U.S. to $0.56 U.S. and revenue of $820 million U.S. to $826 million U.S.
Previous guidance had called for a profit of up to $0.69 U.S. on revenue of $850 million U.S.
Five Below added that it now expects a decrease of 6% to 7% in comparable sales for the quarter.
The lowered Q2 guidance comes after the company announced disappointing first-quarter financial results on June 5 of this year, blaming inflation and high interest rates for the miss.
Analysts were quick to downgrade Five Below stock on news of the CEO departure and lowered guidance.
Truist Securities (TFC) downgraded shares of Five Below to a “hold” rating and cut its price target on the stock to $89 U.S. from $136 U.S. previously.
Prior to today (July 17), the stock of Five Below had declined 53% this year and was trading at $102.07 U.S. per share.
