NEW YORK (AP) — Five Below said Tuesday that its CEO and President Joel Anderson has stepped down amid languishing sales at the discount retailer catering to teens.

The Philadelphia-based company, which has been wrestling with slower spending by its lower-income shoppers and increasing theft, also cut its financial outlook for the current quarter.

Five Below said long-time executive Kenneth Bull will serve as interim president and CEO, effective immediately, while the board searches for a permanent chief executive. Bull has been with the company for nearly two decades, including 11 years as chief financial officer and most recently as chief operating officer. Thomas Vellios, co-founder, non-executive chairman and former CEO, is assuming the role of executive chairman.

Five Below reported that its sales for the 10-week period ended Saturday 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.

It said it now expects sales for the fiscal second quarter ending Aug. 3, to be in the range of $820 million to $826 million. It is forecasting a drop of about 6% to 7% in comparable sales in the period. In June, the company had forecast a range of $830 million to $850 million.

It now expected per share second-quarter net income to be in the range of 53 cents to 56 cents, down from the earlier per share forecast of 57 cents to 69 cents. Analysts had been expecting 63 cents per share on sales of $837 million for the quarter, according to FactSet.

Shares in Five Below Inc. fell more than 9% in after-hours trading.