Investigations
Five Below, Inc.
Overview
Overview
- Deadline:
- Sep 30, 2024
| Company Name: | Company Name: Five Below, Inc. |
| Stock Symbol: | Stock Symbol: FIVE |
Five Below, Inc. (NASDAQ: FIVE): Five Below, Inc. (“Five Below” or the “Company”) and certain of the Company’s senior executives have been sued for violations of the federal securities laws. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Five Below securities between March 20, 2024 and July 16, 2024, inclusive (the “Class Period”). The case is pending in the U.S. District Court for the Eastern District of Pennsylvania and is captioned Himes v. Five Below, Inc., No. 2:24-cv-03638.
If you incurred losses on your investments in Five Below, you are encouraged to submit your information.
Why was Five Below Sued for Securities Fraud?
The complaint alleges that Five Below operates specialty discount stores, and prices most of its products at $5 or less. The complaint further alleges that during the Class Period, the Company misrepresented its accelerating store traffic, merchandising opportunities and store expansions that underpinned its long-term growth. In truth, Five Below had allegedly experienced macroeconomic pressures that dented its store traffic and interfered with the successful execution of the Company’s business.
The Stock Declines as the Truth is Revealed
On June 5, 2024, Five Below is alleged to have revealed that macroeconomic pressures caused lower income customers to reduce their spending, leading to disappointing financial results for the Company’s first quarter of 2024. Still, Five Below assured investors that “chasing trends has always been a strength of ours, and we will continue to quickly identify and capitalize on trends, bringing them in store quickly and communicate the value we provide to customers across our social media channels.” Despite the assurance, the news caused the price of Five Below stock to decline about 10%, from $132.79 per share on June 5, 2024 to $118.72 per share on June 6, 2024.
After the market closed on July 16, 2024, Five Below announced that CEO Joel Anderson resigned as President and CEO, and as a member of the Board of Directors, effective immediately. At the same time, the company reported that the quarter-to-date results for its second quarter of fiscal 2024 showed that comparable sales decreased 5% over the prior year. As a result, Five Below also announced that sales for the full quarter would be in the range of $820 million - $860 million and that comparable sales would decline approximately 6%-7%.
When downgrading the stock and cutting the price target, Truist Securities analyst Scot Ciccarelli wrote that “[e]xpecation for incremental softening in late July, the CEO change, mgmt. comments on self-inflicted wounds and the potential scaling back of unit growth when new mgmt. comes in, has completely eroded our confidence. . . . with full mea culpa and in horribly-late fashion, we are downgrading to Hold until we can get a better handle on the story.” Similarly, Mizuho analyst David Bellinger slashed his price target and downgraded the shares because “we see the path forward as far less transparent than even a few months ago.” The news caused a significant 25% decline in the price of Five Below stock, from $102.07 per share on July 16, 2024 to $76.50 per share on July 17, 2024.
What are my Rights?
If you purchased or otherwise acquired Five Below securities between March 20, 2024 and July 16, 2024, inclusive, you may ask the Court no later than September 30, 2024, which is the first business day after 60 days from the date of the publication of this notice, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
If you incurred losses on your investments in Five Below, you are encouraged to submit your information to speak with an attorney about your rights.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
Attorney advertising. Past results do not guarantee future outcomes.
If you incurred losses on your investments in Five Below, you are encouraged to submit your information.
Why was Five Below Sued for Securities Fraud?
The complaint alleges that Five Below operates specialty discount stores, and prices most of its products at $5 or less. The complaint further alleges that during the Class Period, the Company misrepresented its accelerating store traffic, merchandising opportunities and store expansions that underpinned its long-term growth. In truth, Five Below had allegedly experienced macroeconomic pressures that dented its store traffic and interfered with the successful execution of the Company’s business.
The Stock Declines as the Truth is Revealed
On June 5, 2024, Five Below is alleged to have revealed that macroeconomic pressures caused lower income customers to reduce their spending, leading to disappointing financial results for the Company’s first quarter of 2024. Still, Five Below assured investors that “chasing trends has always been a strength of ours, and we will continue to quickly identify and capitalize on trends, bringing them in store quickly and communicate the value we provide to customers across our social media channels.” Despite the assurance, the news caused the price of Five Below stock to decline about 10%, from $132.79 per share on June 5, 2024 to $118.72 per share on June 6, 2024.
After the market closed on July 16, 2024, Five Below announced that CEO Joel Anderson resigned as President and CEO, and as a member of the Board of Directors, effective immediately. At the same time, the company reported that the quarter-to-date results for its second quarter of fiscal 2024 showed that comparable sales decreased 5% over the prior year. As a result, Five Below also announced that sales for the full quarter would be in the range of $820 million - $860 million and that comparable sales would decline approximately 6%-7%.
When downgrading the stock and cutting the price target, Truist Securities analyst Scot Ciccarelli wrote that “[e]xpecation for incremental softening in late July, the CEO change, mgmt. comments on self-inflicted wounds and the potential scaling back of unit growth when new mgmt. comes in, has completely eroded our confidence. . . . with full mea culpa and in horribly-late fashion, we are downgrading to Hold until we can get a better handle on the story.” Similarly, Mizuho analyst David Bellinger slashed his price target and downgraded the shares because “we see the path forward as far less transparent than even a few months ago.” The news caused a significant 25% decline in the price of Five Below stock, from $102.07 per share on July 16, 2024 to $76.50 per share on July 17, 2024.
What are my Rights?
If you purchased or otherwise acquired Five Below securities between March 20, 2024 and July 16, 2024, inclusive, you may ask the Court no later than September 30, 2024, which is the first business day after 60 days from the date of the publication of this notice, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
If you incurred losses on your investments in Five Below, you are encouraged to submit your information to speak with an attorney about your rights.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
Attorney advertising. Past results do not guarantee future outcomes.