Five Below Faces Shareholder Lawsuit Investigation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 26 2026
0mins
Should l Buy FIVE?
Source: Globenewswire
- Shareholder Lawsuit Investigation: Johnson Fistel, PLLP is investigating potential derivative claims against Five Below, Inc. regarding alleged breaches of fiduciary duty by certain officers and directors, which could expose the company to significant legal and financial risks.
- Performance Decline Disclosure: On July 16, 2024, Five Below disclosed a 5% year-over-year decline in comparable sales and projected second-quarter revenues between $820 million and $826 million, indicating mounting market pressures and declining profitability.
- Executive Departure Impact: The sudden departure of the company's President and CEO amid declining performance raises concerns about management stability and future growth, potentially undermining investor confidence.
- Legal Proceedings Update: The federal securities class action court partially denied the company's motion to dismiss, allowing significant portions of the case to proceed, indicating potential major missteps in information disclosure and increasing legal liabilities for the company.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy FIVE?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on FIVE
Wall Street analysts forecast FIVE stock price to fall
19 Analyst Rating
11 Buy
7 Hold
1 Sell
Moderate Buy
Current: 215.970
Low
132.00
Averages
193.47
High
242.00
Current: 215.970
Low
132.00
Averages
193.47
High
242.00
About FIVE
Five Below, Inc. is a specialty value retailer offering merchandise targeted at the tween and teen demographics. Its assortment of products, including select brands and licensed merchandise. It is engaged in offering a group of products, including leisure, fashion and home, and snacks and seasonal. Leisure includes items such as sporting goods, games, toys, tech, books, electronic accessories, arts and crafts, and party. Fashion and home include items, such as personal accessories, attitude t-shirts, beauty offerings, home goods and storage options. Snack and seasonal include items, such as seasonal goods, greeting cards, candy and other snacks, and beverages. It also offers its merchandise on the Internet, through its fivebelow.com e-commerce Website, offering home delivery and the option to buy online and pick up in store. It also sells its merchandise through on-demand third-party delivery services to enable its customers to shop online and receive convenient delivery.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Tariff Developments Favor Dollar Tree and Five Below Amid Supreme Court Ruling
- Tariff Policy Impact: Analyst Edward Kelly highlights that the Supreme Court ruling is likely to reduce volatility in future tariff policies, providing retailers with a more stable operating environment due to longer time frames for tariff decisions.
- China Tariff Risks: While tariffs on China remain a wildcard, the analysis suggests that future Section 301 tariffs may include exclusions similar to those from Trump's 2018-2019 tariffs, potentially easing the burden on retailers importing from China.
- Earnings Potential Boost: Given the high exposure of Dollar Tree and Five Below to Chinese goods, analysts believe these companies could see the largest earnings benefits from reduced tariffs, enhancing their value and supporting margins.
- Market Reaction Lag: Although giants like Target, Walmart, and Costco may also benefit from lower tariffs, analysts expect the near-term earnings impact for Dollar Tree and Five Below to be more significant, indicating that the market has not fully recognized this potential.
See More
Supreme Court to Rule on Trump's Tariff Regime
- Legal Challenge: The Supreme Court is set to release its ruling today at 10 a.m. ET on the case Learning Resources, Inc. v. Trump, which questions whether Trump can legally impose tariffs using the International Emergency Economic Powers Act (IEEPA), with lower courts ruling against him twice.
- Market Predictions: On Polymarket, the odds of Trump winning the tariff case stand at just 24%, reflecting skepticism in the market, with a trading volume exceeding $4.5 million and a slight decline in the odds over the past two days.
- Refund Complications: Should the Supreme Court block Trump's tariffs, importers should not expect immediate refunds, as Polymarket indicates an 18% chance that the Court will force Trump to refund tariffs by June 30, highlighting logistical challenges involved in such a process.
- Corporate Preparedness: Over 100 companies have pre-filed lawsuits to protect their refund claims regardless of the outcome, with IEEPA tariffs having collected over $130 billion since “Liberation Day” in April 2025, marking the largest federal tax increase since 1993.
See More
Supreme Court Set to Rule on Tariff Authority
- Tariff Legality Review: The Supreme Court is poised to rule on the legality of tariffs imposed by President Trump under the International Emergency Economic Powers Act (IEEPA), which could significantly impact pricing and margin strategies for consumer giants like Costco and Procter & Gamble.
- Potential EBITDA Uplift: Morgan Stanley's analysis suggests that a rollback or limitation of IEEPA-based tariffs could lead to a mid-single-digit uplift in EBITDA for affected retailers, providing notable margin support amid economic pressures.
- Retailer Response Strategies: While awaiting the ruling, retailers such as Costco and Amazon are leveraging strong negotiating power and value-oriented business models to navigate tariff pressures, ensuring they protect consumer value even as costs rise.
- Optimistic Market Outlook: Despite tariffs remaining a defining feature of the trade landscape, analysts believe that consumer spending may receive additional support from tax refunds, making the retail and consumer staples sectors attractive investment opportunities.
See More
Stock Market Rebounds Slightly, Nvidia Gains from Meta AI Deal
- Market Rebound: The stock market experienced a slight rebound on Tuesday, despite remaining divided, indicating cautious optimism among investors that could provide some support for future trading.
- Nvidia Gains: Nvidia's stock rose late in the session due to a deal with Meta in the AI sector, reflecting ongoing market confidence in its capabilities, which may drive future earnings growth.
- AMD and Broadcom Decline: In contrast, AMD and Broadcom saw their stock prices slump, suggesting a cautious outlook from the market regarding these companies, which could affect their short-term investment appeal.
- Increased Industry Divergence: The overall market divergence has intensified, with some tech stocks performing well while others face pressure, potentially leading investors to be more selective in their stock choices, impacting overall market liquidity.
See More
Stock Market Rebounds Slightly, Nvidia Gains from Meta AI Deal
- Market Rebound: The stock market experienced a slight rebound on Tuesday, despite remaining divided, indicating cautious optimism among investors that may provide some support for future trading.
- Nvidia Gains: Nvidia's stock rose late in the session due to a deal with Meta in the AI sector, highlighting its ongoing leadership in AI and potential new growth opportunities for the company.
- AMD and Broadcom Decline: In contrast, AMD and Broadcom saw their stock prices slump, reflecting market concerns about the semiconductor industry, which could impact investor confidence and future investment decisions in this sector.
- Divergent Investor Sentiment: While Nvidia performed strongly, the overall market sentiment remains divided, prompting investors to closely monitor industry dynamics and company fundamentals to make more informed investment choices.
See More
Market Volatility and Stock Performance Recap
- Tech Stock Pressure: Despite attempts by high-multiple tech stocks like Microsoft to bounce back, the broader market remains under pressure due to fears that AI disruption could undermine traditional enterprise software companies, with the S&P 500 and Nasdaq down 1% and 2%, respectively.
- Eli Lilly Strong Performance: Pharmaceutical giant Eli Lilly saw its shares rise nearly 10% after delivering a significant earnings beat, indicating strong market confidence in its future growth and likely enhancing its market share in the pharmaceutical sector.
- Eaton Stock Volatility: Eaton's stock fluctuated near the flat line after a mixed fourth-quarter report, ultimately closing up nearly 1%, with investor focus on the planned spinoff of its mobility business in 2027 potentially serving as a future catalyst for growth.
- GE Vernova Decline: Despite an upgrade from Baird to outperform, GE Vernova's shares fell 7.5% to around $722, reflecting market concerns about the energy infrastructure cycle, although analysts expressed optimism about avoiding overcapacity issues in the near term.
See More
Tariff Developments Favor Dollar Tree and Five Below Amid Supreme Court Ruling
- Tariff Policy Impact: Analyst Edward Kelly highlights that the Supreme Court ruling is likely to reduce volatility in future tariff policies, providing retailers with a more stable operating environment due to longer time frames for tariff decisions.
- China Tariff Risks: While tariffs on China remain a wildcard, the analysis suggests that future Section 301 tariffs may include exclusions similar to those from Trump's 2018-2019 tariffs, potentially easing the burden on retailers importing from China.
- Earnings Potential Boost: Given the high exposure of Dollar Tree and Five Below to Chinese goods, analysts believe these companies could see the largest earnings benefits from reduced tariffs, enhancing their value and supporting margins.
- Market Reaction Lag: Although giants like Target, Walmart, and Costco may also benefit from lower tariffs, analysts expect the near-term earnings impact for Dollar Tree and Five Below to be more significant, indicating that the market has not fully recognized this potential.
See More
Supreme Court to Rule on Trump's Tariff Regime
- Legal Challenge: The Supreme Court is set to release its ruling today at 10 a.m. ET on the case Learning Resources, Inc. v. Trump, which questions whether Trump can legally impose tariffs using the International Emergency Economic Powers Act (IEEPA), with lower courts ruling against him twice.
- Market Predictions: On Polymarket, the odds of Trump winning the tariff case stand at just 24%, reflecting skepticism in the market, with a trading volume exceeding $4.5 million and a slight decline in the odds over the past two days.
- Refund Complications: Should the Supreme Court block Trump's tariffs, importers should not expect immediate refunds, as Polymarket indicates an 18% chance that the Court will force Trump to refund tariffs by June 30, highlighting logistical challenges involved in such a process.
- Corporate Preparedness: Over 100 companies have pre-filed lawsuits to protect their refund claims regardless of the outcome, with IEEPA tariffs having collected over $130 billion since “Liberation Day” in April 2025, marking the largest federal tax increase since 1993.
See More
Supreme Court Set to Rule on Tariff Authority
- Tariff Legality Review: The Supreme Court is poised to rule on the legality of tariffs imposed by President Trump under the International Emergency Economic Powers Act (IEEPA), which could significantly impact pricing and margin strategies for consumer giants like Costco and Procter & Gamble.
- Potential EBITDA Uplift: Morgan Stanley's analysis suggests that a rollback or limitation of IEEPA-based tariffs could lead to a mid-single-digit uplift in EBITDA for affected retailers, providing notable margin support amid economic pressures.
- Retailer Response Strategies: While awaiting the ruling, retailers such as Costco and Amazon are leveraging strong negotiating power and value-oriented business models to navigate tariff pressures, ensuring they protect consumer value even as costs rise.
- Optimistic Market Outlook: Despite tariffs remaining a defining feature of the trade landscape, analysts believe that consumer spending may receive additional support from tax refunds, making the retail and consumer staples sectors attractive investment opportunities.
See More
Stock Market Rebounds Slightly, Nvidia Gains from Meta AI Deal
- Market Rebound: The stock market experienced a slight rebound on Tuesday, despite remaining divided, indicating cautious optimism among investors that could provide some support for future trading.
- Nvidia Gains: Nvidia's stock rose late in the session due to a deal with Meta in the AI sector, reflecting ongoing market confidence in its capabilities, which may drive future earnings growth.
- AMD and Broadcom Decline: In contrast, AMD and Broadcom saw their stock prices slump, suggesting a cautious outlook from the market regarding these companies, which could affect their short-term investment appeal.
- Increased Industry Divergence: The overall market divergence has intensified, with some tech stocks performing well while others face pressure, potentially leading investors to be more selective in their stock choices, impacting overall market liquidity.
See More
Stock Market Rebounds Slightly, Nvidia Gains from Meta AI Deal
- Market Rebound: The stock market experienced a slight rebound on Tuesday, despite remaining divided, indicating cautious optimism among investors that may provide some support for future trading.
- Nvidia Gains: Nvidia's stock rose late in the session due to a deal with Meta in the AI sector, highlighting its ongoing leadership in AI and potential new growth opportunities for the company.
- AMD and Broadcom Decline: In contrast, AMD and Broadcom saw their stock prices slump, reflecting market concerns about the semiconductor industry, which could impact investor confidence and future investment decisions in this sector.
- Divergent Investor Sentiment: While Nvidia performed strongly, the overall market sentiment remains divided, prompting investors to closely monitor industry dynamics and company fundamentals to make more informed investment choices.
See More
Market Volatility and Stock Performance Recap
- Tech Stock Pressure: Despite attempts by high-multiple tech stocks like Microsoft to bounce back, the broader market remains under pressure due to fears that AI disruption could undermine traditional enterprise software companies, with the S&P 500 and Nasdaq down 1% and 2%, respectively.
- Eli Lilly Strong Performance: Pharmaceutical giant Eli Lilly saw its shares rise nearly 10% after delivering a significant earnings beat, indicating strong market confidence in its future growth and likely enhancing its market share in the pharmaceutical sector.
- Eaton Stock Volatility: Eaton's stock fluctuated near the flat line after a mixed fourth-quarter report, ultimately closing up nearly 1%, with investor focus on the planned spinoff of its mobility business in 2027 potentially serving as a future catalyst for growth.
- GE Vernova Decline: Despite an upgrade from Baird to outperform, GE Vernova's shares fell 7.5% to around $722, reflecting market concerns about the energy infrastructure cycle, although analysts expressed optimism about avoiding overcapacity issues in the near term.
See More
