Five Below CEO Joel Anderson departs amid weak sales; interim chief named
The chief executive of Five Below has departed the company after serving nearly 10 years in the role.
The tween- and teen-focused extreme-value retailer said that Joel Anderson has stepped down as president and CEO, and from the board, “to pursue other interests.” It named company veteran Kenneth Bull, COO, as interim president and CEO.
Thomas Vellios, Five Below co-founder, non-executive chairman and former CEO, is assuming the role of executive chairman on an interim basis to support Bull and the executive leadership team while the board conducts a search for a permanent CEO.
Five Below has been challenged by a pullback in spending by lower-income customers and increasing levels of shrink. In March, the company said it was deploying additional initiatives, including further limiting self-checkout and adding more staff and security, to reduce shrink.
[READ MORE: Five Below sales soar 19%; limiting self-checkout as shrink hits profitability]
Bull joined Five Below in 2005 as CFO. He was named COO in March 2023.
“I have tremendous confidence in Ken and the senior leadership team who will continue to execute on our growth strategy,” stated Vellios. “Ken has been an integral part of the Five Below team for nearly two decades. “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.”
The leadership change was announced as the retailer cut its financial outlook for the current quarter, saying it expects second-quarter sales of between $820 million and $826 million, down from its earlier forecast of $830 million to $850 million, with a 6% to 7% decrease in comparable sales. Net income is expected to be in the range of $0.53 to $0.56 per share, down from its earlier forecast of $0.57 cents to $0.69.
Five Below also reported that its sales for the 10-week period ended July 13 increased by 9.5% compared with the first 10 weeks of the second quarter ended July 8, 2023. Comparable sales decreased 5% versus the restated and comparable period ended July 15, 2023.
Five Below opened a record 205 new stores in fiscal 2023. It expects to open between 225 and 235 new stores and convert approximately 200 locations to its “Five Beyond” format this year. The company has said it wants to grow its footprint to 3,500 locations by the end of 2030.
Founded in 2002 and headquartered in Philadelphia, Five Below has more than 1,600 stores in 43 states.
