Five Below, Inc.

On June 5, 2024, Five Below announced its first quarter 2024 sales results, falling below expectations, and cut its full year 2024 guidance.

On this news, Five Below’s stock price fell $14.07, or 10.6%, to close at $118.72 per share on June 6, 2024, thereby injuring investors.

Then, on July 16, 2024, after the market closed, Five Below announced that its Chief Executive Officer had stepped down “to pursue other interests.” Additionally, the Company provided quarter-to-date results and updated guidance for its second quarter of fiscal 2024, stating that it now expects sales to be between $820 to $826 million, compared to the previously expected $830 to $850 million, and net income of $0.53 to $0.56, compared to the previously expected $0.57 to $0.69.

On this news, Five Below’s stock price fell $25.57, or 25.1%, to close at $76.60 per share on July 17, 2024, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) macroeconomic pressures were interfering with the Company’s strategic operations and preventing it from executing successfully; and (2) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.