five below (FIVE) Key Developments
Five Below, Inc. Appoints Thomas G. Vellios as Executive Chairman Effective February 1, 2015
Feb 23 15
The Board of Directors of Five Below, Inc. appointed Thomas G. Vellios as Executive Chairman effective February 1, 2015. In connection with Mr. Vellios' appointment, on February 18, 2015, the Company and Mr. Vellios amended his employment letter, dated October 14, 2010, as amended, to reflect Mr. Vellios' position and compensation as Executive Chairman, effective as of February 1, 2015.
Five Below, Inc. Reports Sales Results for the Nine Weeks Ended January 3, 2015; Provides Earnings Guidance for the Fourth Quarter and Full Year of Fiscal 2014
Feb 12 15
Five Below, Inc. reported sales results for the nine weeks ended January 3, 2015. For the period, the company reported that comparable store sales increased 3.2% when compared to the same period of fiscal 2013. Net sales were $230.7 million, an increase of 24.5% from $185.3 million for the same period of fiscal 2013.
The company expects net sales for the fourth quarter of fiscal 2014 to be in the range of $262 million to $263 million, assuming an approximate 3% increase in comparable store sales. For the fourth quarter of fiscal 2014, the company also expects net income to be in the range of $32.5 million to $33 million, with a diluted income per common share range of $0.59 to $0.60 on approximately 54.7 million estimated weighted average shares outstanding.
The company continue to see strong performance from new stores and now expect to deliver total net sales growth for fiscal 2014 of 27% and adjusted net income growth of approximately 30%.
Levi & Korsinsky, LLP Announces Class Action Lawsuit Against Five Below, Inc
Feb 9 15
Levi & Korsinsky announced that a class action lawsuit has been commenced in the United States District Court for the Eastern District of Pennsylvania on behalf of investors who purchased Five Below, Inc. securities between June 5, 2014 and December 4, 2014. The complaint alleges that while the company concealed from investors that its two founders intended to step down as CEO and Chairman, it also raised its fiscal 2014 sales and earnings guidance twice. The complaint further alleges that during this time Five Below's founders and Chief Financial Officer sold almost $30 million worth of their personally held shares at fraud-inflated prices. On December 4, 2014, Five Below disclosed that its sales growth had slowed and that it was reducing its sales and profit forecasts; it was also disclosed that the company's founders were resigning as CEO and Chairman. Upon this news, shares of Five Below fell more than 12%.
Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Five Below, Inc
Jan 9 15
Robbins Geller Rudman & Dowd LLP announced that a class action has been commenced in the United States District Court for the Eastern District of Pennsylvania on behalf of purchasers of Five Below, Inc. common stock during the period between June 5, 2014 and December 4, 2014. The complaint charges Five Below and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Five Below is a specialty discount retailer targeted at teens and pre-teens that prices all of its clothing and accessories at $5 or below. The complaint alleges that during the Class Period, the defendants made false and misleading statements or failed to disclose adverse information about Five Below’s business and prospects. Specifically, the complaint alleges that while actively concealing from investors that the company’s two founders intended to step down from their roles as Chief Executive Officer and Chairman and name as CEO their newly hired President who was relatively new to Five Below and totally untested in the role of CEO at a publicly traded company. Five Below raised its fiscal 2014 sales and earnings guidance twice, once at the start of the Class Period on June 5, 2014 and then again on September 10, 2014. With the price of Five Below common stock increasing on their misrepresentations about the company’s business metrics and financial prospects, reaching a Class Period high of nearly $48 in intraday trading, both of the company’s founders and its Chief Financial Officer cashed in, selling almost $30 million worth of their personally held shares at fraud-inflated prices.
Five Below, Inc. Names Michael Romanko as Executive Vice President of Merchandising, Effective from January 19, 2015
Jan 8 15
Five Below, Inc. announced that Michael Romanko has been named Executive Vice President of Merchandising, reporting directly to Joel Anderson, President. In his new role, Mr. Romanko will be responsible for overseeing all aspects of merchandising strategy and operations including product development. Mr. Romanko brings more than thirty years of retail industry experience, most recently as Chief Design Officer with Patriarch Partners where he was responsible for merchandise line building and sourcing and design for 75 businesses. He has extensive experience in merchandising, product development and design, having held several executive positions with national retailers including Macys, Toys"R"Us, Linens 'n Things and Fortunoff. Mr. Romanko will assume his new role at Five Below on January 19th, 2015.