Five Below CEO and President Joel Anderson Resigns Amid Sluggish Sales

Five Below announced Tuesday that its CEO and President, Joel Anderson, has resigned as the discount retailer faces declining sales and other challenges. The Philadelphia-based company, which caters to teens, has been grappling with reduced spending by lower-income shoppers and increasing theft. Consequently, it has also lowered its financial outlook for the current quarter. Following the announcement, Five Below Inc. shares dropped over 9% in after-hours trading.

Long-time executive Kenneth Bull will take over as interim president and CEO while the board searches for a permanent replacement. Bull has been with Five Below for nearly 20 years, serving 11 years as CFO and most recently as COO. Co-founder and former CEO Thomas Vellios will step in as executive chairman.

Five Below reported a 9.5% increase in sales for the 10-week period ending Saturday compared to the same period in the second quarter ending July 8, 2023. However, comparable sales dropped 5% versus the restated and comparable period ending July 15, 2023.

The company now expects fiscal second-quarter sales ending August 3 to be between $820 million and $826 million, forecasting a 6% to 7% decline in comparable sales. This is a reduction from the June forecast of $830 million to $850 million.

Additionally, Five Below has revised its second-quarter net income per share estimate to be between 53 cents and 56 cents, down from the previous forecast of 57 cents to 69 cents. Analysts had anticipated 63 cents per share on sales of $837 million, according to FactSet.

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