The teen-focused retailer announced that COO Joel Anderson will replace co-founder and current CEO Tom Vellios, effective Feb. 1, 2015. Vellios will remain with Five Below as executive chairman after stepping down as CEO.
Five Below also announced its guidance for the fourth quarter, saying that it expects earnings of 59 cents to 62 cents and revenue of $262 million to $266 million for the quarter. Analysts surveyed by Zacks Investment Research expect earnings of 64 cents and revenue of $268.83 million for the quarter.
For the third quarter the retailer announced earnings of 6 cents a share, in-line with analysts' estimates. Revenue grew 24.6% year over year to $138 million for the quarter, beating estimates of $137.2 million.
TheStreet Ratings team rates FIVE BELOW INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate FIVE BELOW INC (FIVE) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, premium valuation and poor profit margins."
You can view the full analysis from the report here: FIVE Ratings Report