Five Below, Inc. has achieved significant long-term earnings growth through store expansion. Good new store economics have made the growth accretive. Increasing ecommerce competition from Temu and others have pressured Five Below. Preliminary Q1 results reversed the trend, showing impressive growth. Five Below's predominantly Chinese sourcing is pressured by tariffs. The U.S.-China trade deal alleviates a good amount of the pressure, but Five Below's outlook is still affected.
Five Below's focus on delivering value, combined with its successful marketing and product offerings, helps maintain customer engagement and brand strength.
Five Below (FIVE) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
FIVE raises the Q1 outlook, expecting strong sales growth and store openings. It also announces a leadership transition to strengthen its long-term strategy.
Five Below stock jumped Friday after the retailer said its stores have been performing better than expected.
Discount retail chain Five Below reportedly suspended cargo shipments from China due to the trade war between the country and the U.S.
I recommend a hold rating for Five Below, Inc. due to cautious FY 2025 guidance and weak core operating metrics despite potential for SSS growth and margin expansion. FIVE reported adj EPS of $3.48, beating guidance, with revenue up 4% y/y, but SSS down 3% y/y and gross margins falling by 74 bps. The SKU rationalization strategy and macroeconomic conditions favoring value retailers could drive SSS growth and margin expansion, but hard data is needed to confirm this.
Five Below (NASDAQ:FIVE) shares added more than 6% as the discount retailer reported better-than-expected results for the fourth quarter and upbeat quarterly guidance. For the quarter ending February 1, 2025, Five Below posted sales of $1.39 billion, up 4% from the year-ago quarter and ahead of estimates of $1.38 billion.
Shares of Five Below Inc. FIVE were climbing in early trading Thursday after the company reported upbeat fourth-quarter earnings.
Five Below (FIVE) shares surged Thursday, a day after the discount retailer posted better-than-expected results and issued a rosy outlook as its holiday sales strategy paid off and it looked to open more locations.
Accenture PLC (NYSE:ACN) and Five Below Inc (NASDAQ:FIVE) stocks are making significant moves following their latest earnings reports.
FIVE's fiscal fourth-quarter results reflect higher year-over-year sales. However, the gross margin declines 70 bps year over year to 40.5%.