A securities class action has been filed in the USDC — E.D.PA. against Five Below, Inc. (FIVE) (“FIVE” or the “Company”), on behalf of all persons or entities who purchased or otherwise acquired CVS securities between May 3, 2023 and April 30, 2024, both dates inclusive (the “Class Period”).
FIVE is a Pennsylvania corporation formed in 2002. It is a specialty value retailer offering merchandise targeted at the tween and teen demographic. FIVE offers an edited assortment of products, with most priced at $5 and below. FIVE’s edited assortment of products includes select brands and licensed merchandise. The Five believes its merchandise is readily available, and that there are a number of potential vendors that could be utilized, if necessary, under approximately the same terms the five is currently receiving; thus, it is not dependent on a single vendor or a group of vendors.
The Complaint alleges that defendants provided investors with false and/or materially misleading information about FIVE’s financial strength and operations, including its outlook for the first quarter and full year 2024. This information included FIVE’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 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.
Investors discovered that these statements were false and/or materially misleading when, on June 5, 2024, FIVE announced disappointing first quarter 2024 sales result and cut its full year 2024 guidance. In response to the disclosure, FIVE’s stock price declined $14.07/per share within the span of just one day.
On July 16, 2024, FIVE announced the resignation of Joel Anderson from his positions as President and Chief Executive Officer, as well as from his seat on the Company’s Board of Directors. Concurrently, FIVE projected a decrease of 6% to 7% in comparable sales for the fiscal second quarter ending August 3, 2024. Following this news, FIVE’s stock price dropped over 25% on July 17, 2024.The claim arise on May 1, 2024, CVS issued a press release reporting its results for the quarter ended March 31, 2024 (“Q1 2024”) and revising its full-year 2024 guidance.
If you purchased FIVE securities during the class period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.
About Lowey Dannenberg
Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.