Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Five Below, Inc. (FIVE)
NEW YORK, Sept. 17, 2024 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Eastern District of Pennsylvania on behalf of all persons or entities who purchased or otherwise acquired Five Below, Inc. (“Five Below” or the “Company”) (NASDAQ: FIVE) securities between March 20, 2024 and July 16, 2024, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.
The Complaint alleges that Defendants provided investors with false and/or materially misleading information about the Company’s financial strength and operations, including its outlook for the first quarter and full year 2024. This information included the Company’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.
According to the Complaint, the market discovered that these statements were false and/or materially misleading when, on June 5, 2024, the Company announced disappointing first quarter 2024 sales result 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, the Company 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’s stock price declined $14.07/per share within the span of just one day.
On July 16, 2024, the Company 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, the Company’s stock price dropped over 25% on July 17, 2024.
Investors who purchased or otherwise acquired shares of Five Below should contact the Firm prior to the September 30, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
Please visit our website at http://www.gme-law.com for more information about the firm.
