Five Below CEO To Step Down

The CEO of the discount retail store Five Below has stepped down and will be replaced, effective immediately.

The company issued a press release explaining that Joel Anderson has left his roles as president, CEO, and member of the board of directors to “pursue other interests.” In his place, Kenneth Bull has stepped in as interim president and CEO.

Thomas Vellios, co-founder, non-executive chairman, and former CEO, assumes the role of executive chairman on an interim basis. This appointment will be part of the transition process as the company’s board searches for a new CEO, according to The Wall Street Journal.

“I have tremendous confidence in Ken and the senior leadership team who will continue to execute on our growth strategy. Ken has been an integral part of the Five Below team for nearly two decades, including leading the Company for 11 years as CFO and most recently as COO, with significant experience and deep knowledge of our business. He has played a pivotal role in architecting our strategic growth plans and leading key supporting initiatives,” said Vellios in the press release.

He continued, “With a long runway for continued growth and industry-leading returns on our new stores, we remain focused on driving sales, optimizing margins and providing customers with the exceptional value they expect from Five Below.”

Five Below CEO Joel Anderson Steps Down https://t.co/J9S2Q98cjg

— WSJ Business News (@WSJbusiness) July 16, 2024

The company also provided updated data showing an overall slump in sales. However, it did not formally state whether this was the reason for the management transition.

According to the data, for the 10-week period ending on July 13, 2024, total sales rose by 9.5% compared to the initial 10 weeks of the second quarter of 2023, which ended on July 8 last year. However, comparable sales saw a decline of 5% when compared to the adjusted period ending July 15, 2023. Consequently, Five Below now projects that sales for the fiscal second quarter, ending on August 3, 2024, will be between $820 million and $826 million, with an anticipated decrease in comparable sales of approximately 6% to 7%.

The expected diluted earnings per common share are estimated to be in the range of $0.53 to $0.56. Five Below will announce its second-quarter results and provide its outlook for the third quarter and the full year when it releases its second-quarter earnings.

The company markets its stock toward tweens, teens, and young adults. For years, all of its products were marked at $5 or below. Today, some items are marked significantly higher and sell as part of the store’s “Five Beyond Shop.”

The company was founded in 2002. Currently, over 1,600 stores are open in 43 states.