Five Below Stock Tumbles on CEO Departure, Lowered Guidance

Shares of discount retailer Five Below (FIVE) tumbled Wednesday greeting aft nan institution announced nan abrupt departure of its CEO, and lowered income guidance for nan 2nd quarter.

COO Kenneth Bull is group to return complete arsenic interim CEO aft nan announcement Tuesday that Joel Anderson is leaving nan domiciled aft astir a decade starring nan institution to "pursue different interests." Thomas Vellios, a co-founder and erstwhile CEO of Five Below, is besides temporarily taking nan domiciled of executive chair of nan committee to assistance Bull successful nan modulation and nan committee arsenic it searches for a imperishable replacement.

CEO Search Begins arsenic Outlook Weakens

Five Below's hunt for a caller CEO comes arsenic nan institution lowered its guidance for nan 2nd quarter. Sales are now projected betwixt a scope of $820 cardinal to $826 million, pinch a 6% to 7% projected driblet successful comparable shop sales. In June, nan retailer had projected income from $830 cardinal to $850 million, pinch a "mid-single digit decrease" successful comparable sales. The institution expects diluted net per stock (EPS) of betwixt 53 cents to 56 cents per share, down from nan 57 cents to 69 cents per stock projected previously.

JPMorgan analysts noted Five Below's guidance echoed comments Tuesday that they made successful last month's net report citing a diminution successful income among lower-income consumers. After downgrading nan retailer's banal to "neutral" earlier this year, JPMorgan analysts connected Tuesday besides lowered their value target for nan banal to $87 from $122.

Five Below shares were down 15.6% to $86.13 successful pre-market trading arsenic of 7:50 a.m. ET Wednesday pursuing nan news.