SAN DIEGO, Aug. 23, 2024 (GLOBE NEWSWIRE) — Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Five Below, Inc. (NASDAQ: FIVE) securities between March 20, 2024 and July 16, 2024. Five Below is a specialty value retailer offering merchandise targeted at the tween and teen demographic.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
The Allegations: Robbins LLP is Investigating Allegations that Five Below, Inc. (FIVE) Misled Investors Regarding its Operations and Financial Health
According to the complaint, during the class period, defendants provided investors with false and/or materially misleading information about Five Below’s financial strength and operations, including its outlook for the first quarter and full year 2024. This information included Five Below’s statement that net sales are expected to be in the range of $826 million to $846 million based on opening approximately 55 to 60 new stores in the first quarter. Further, Five Below claimed that net sales for the full year are expected to be in the range of $3.97 billion to $4.07 billion based on opening between 225 and 235 new stores.
On June 5, 2024, Five Below announced disappointing first quarter 2024 sales results and cut its full year 2024 guidance stating, “Net sales are expected to be in the range of $3.79 billion to $3.87 billion based on opening approximately 230 new stores.” At the same time, Five Below claimed that for the second quarter, “Net sales are expected to be in the range of $830 million to $850 million based on opening approximately 60 new stores.” In response to the disclosure, Five Below’s stock price declined $14.07 per share within one day.
The complaint further alleges that the following month, investors discovered that Five Below’s financial and operational problems were significantly worse than represented. On July 16, 2024, Five Below announced the sudden departure of CEO Joel Anderson and guidance cut for the second quarter. In pertinent part, Five Below told investors that “the Company now expects sales for the fiscal second quarter ending August 3, 2024 to be in the range of $820 million to $826 million.” In response to the news, Five Below’s stock price declined by $25.57 per share.
What Now: You may be eligible to participate in the class action against Five Below, Inc. Shareholders who want to serve as lead plaintiff for the class must file their papers with the court by September 30, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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