Five Below Inc. Stocks Decline Amid Escalating US-China Trade Tensions and Order Cancellations
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Five Below Inc. experienced a decrease in its stock price on Friday as it instructed vendors to hold off on shipping goods from China to the US, as per a memo examined by Bloomberg. A letter sent by A.P. Moller-Maersk A/S to suppliers on behalf of the discount retail chain led to a 10% drop in shares, citing the company's decision to pause cargo shipments due to the impact of US-China trade tariffs. The memo did not confirm if all Five Below vendors received it. The directive from Maersk outlined that no containers should be delivered to the yard from April 10, and loaded containers must be returned to the carrier. Five Below representatives were not available for immediate comment. Steve Madden Ltd. also saw a share decline of up to 5.3%, while Five Below stated that China is its main source for imported products. Retailers like Amazon Inc. are cancelling orders from China and other parts of Asia amidst the escalating US-China trade dispute, leading to a decrease in container bookings according to Vizion Inc. Despite the lack of public disclosure of customer-specific information by Maersk, a company representative emphasized being supportive to customers navigating ongoing uncertainties in the business environment.

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