Five Below Stock Surges on New CEO and Raised Forecast
Key Points:
Five Below shares jumped over 13% in premarket trading after announcing a new CEO and improving its annual outlook, citing "solid" Black Friday sales.
Winnie Park, former CEO of Forever 21, has been named Five Below’s new CEO.
The company raised its full-year sales and earnings projections, recovering from a prior guidance cut.
Shares of Five Below (FIVE) surged after the discount retailer revealed strong leadership changes and an optimistic outlook for the year. The announcement follows the appointment of Winnie Park, previously with Forever 21, as CEO. This comes after the sudden exit of former CEO Joel Anderson in July, which had prompted a temporary leadership role by COO Kenneth Bull.
Bull commented, “Our strong Black Friday weekend results are an encouraging start to the holiday season. However, the shorter shopping period this year between Thanksgiving and Christmas is reflected in our projections.”
Improved Full-Year Projections
Five Below has raised its forecast for 2024:
Net sales: Now expected to range between $3.84 billion and $3.87 billion, up from the prior range of $3.73 billion to $3.80 billion.
Comparable sales are anticipated to drop about 3%, an improvement from the previous forecast of a 4% to 5.5% decline.
Adjusted EPS: Estimated between $4.78 and $4.96, up from the earlier guidance of $4.35 to $4.71.
Third-Quarter Highlights
The company also posted strong third-quarter results:
Net sales: $843.7 million, surpassing analyst expectations of $797.4 million.
Adjusted EPS: 42 cents, significantly higher than the projected 16 cents.
According to JPMorgan analysts, Five Below saw a sharp turnaround in store foot traffic starting mid-Q3, a stark contrast to earlier quarters. Despite the stock's 50% decline this year, the analysts raised their price target to $110 from $83 but maintained an “underweight” rating.
Five Below’s momentum, driven by a leadership refresh and stronger consumer engagement, signals a positive holiday season ahead.
Key Points:
Five Below shares jumped over 13% in premarket trading after announcing a new CEO and improving its annual outlook, citing "solid" Black Friday sales.
Winnie Park, former CEO of Forever 21, has been named Five Below’s new CEO.
The company raised its full-year sales and earnings projections, recovering from a prior guidance cut.
Shares of Five Below (FIVE) surged after the discount retailer revealed strong leadership changes and an optimistic outlook for the year. The announcement follows the appointment of Winnie Park, previously with Forever 21, as CEO. This comes after the sudden exit of former CEO Joel Anderson in July, which had prompted a temporary leadership role by COO Kenneth Bull.
Bull commented, “Our strong Black Friday weekend results are an encouraging start to the holiday season. However, the shorter shopping period this year between Thanksgiving and Christmas is reflected in our projections.”
Improved Full-Year Projections
Five Below has raised its forecast for 2024:
Net sales: Now expected to range between $3.84 billion and $3.87 billion, up from the prior range of $3.73 billion to $3.80 billion.
Comparable sales are anticipated to drop about 3%, an improvement from the previous forecast of a 4% to 5.5% decline.
Adjusted EPS: Estimated between $4.78 and $4.96, up from the earlier guidance of $4.35 to $4.71.
Third-Quarter Highlights
The company also posted strong third-quarter results:
Net sales: $843.7 million, surpassing analyst expectations of $797.4 million.
Adjusted EPS: 42 cents, significantly higher than the projected 16 cents.
According to JPMorgan analysts, Five Below saw a sharp turnaround in store foot traffic starting mid-Q3, a stark contrast to earlier quarters. Despite the stock's 50% decline this year, the analysts raised their price target to $110 from $83 but maintained an “underweight” rating.
Five Below’s momentum, driven by a leadership refresh and stronger consumer engagement, signals a positive holiday season ahead.