10 Firms Take a Beating on Tariff Worries

3. Five Below Inc. (NASDAQ:FIVE)

Five Below fell back to the $50 level on Thursday, shedding 27.81 percent to close at $58.83 apiece as investors disposed of its stocks following news that it recalled one of its products over fire hazards.

According to the US Consumer Product Safety Commission, FIVE recalled some 29,000 units of its Room2Room LED Iridescent Bear Lights due to the risk of overheating and melting on its USB cord, which could lead to fire and burn hazards.

The firm has received 28 reports of its USB cord overheating and melting, while six said they burned their fingers, and two reported property damage on walls and headboards.

The bear lights were sold online and at Five Below at $12 apiece in locations throughout the US from September 2024 to February 2025.

Prior to President Donald Trump’s return to the White House, an analyst warned last year that FIVE, Best Buy, and Wayfair would be especially at risk from the tariffs, which could result in a plunge in earnings performance.