Core Insights - Five Below, Inc. reported strong fiscal Q3 results for the period from August to October, highlighting robust financial metrics across the board [1] Financial Performance - The company demonstrated significant growth in same-store sales, indicating a positive trend in customer engagement and sales performance [1] Investment Philosophy - The investment approach focuses on identifying mispriced securities by analyzing the underlying drivers of a company's financials, often revealed through a DCF model valuation [1]

Core Viewpoint - Five Below Inc. reported strong third-quarter results, significantly exceeding analyst expectations, driven by robust comparable sales growth and ongoing store expansion [1][2]. Financial Performance - For the quarter ended November 1, 2025, adjusted earnings were $0.68 per share, surpassing the analyst consensus of $0.23 [2]. - Revenue increased by 23.1% year over year to $1.038 billion, exceeding expectations of $972.43 million [2]. - Comparable sales rose by 14.3% compared to the same period last year, indicating broad-based strength in the business [2]. Store Expansion - Five Below opened 49 net new locations during the quarter, bringing the total store count to 1,907 across 44 states, a 9.0% increase from the previous year [3]. Future Outlook - The company raised its fiscal 2025 outlook, projecting full-year revenue between $4.62 billion and $4.65 billion, with adjusted earnings per share expected to be between $5.71 and $5.89 [3]. - For the fourth quarter, Five Below forecasts revenue of $1.58 billion to $1.61 billion, above market expectations of $1.55 billion, and projects adjusted EPS of $3.36 to $3.54, ahead of the consensus estimate of $3.28 [4].

Core Viewpoint - Five Below, Inc. is experiencing strong financial performance, leading to an optimistic outlook and a significant price target increase from Jefferies, reflecting confidence in the company's growth prospects [2][4]. Financial Performance - Five Below reported earnings of $0.68 per share for Q3 2026, exceeding the Zacks Consensus Estimate of $0.22 per share, resulting in a +209.09% earnings surprise [2][6]. - The company achieved revenues of $1.04 billion in Q3 2026, surpassing the Zacks Consensus Estimate by 7.05% and showing a substantial increase from $843.71 million in the same period last year [3][6]. - Five Below has raised its full-year revenue forecast for the second consecutive quarter, now expecting annual revenue between $4.62 billion and $4.65 billion [4]. Stock Performance - The current stock price of Five Below is $164.23, reflecting a slight increase of approximately 0.66% or $1.08, with fluctuations between a daily low of $160.16 and a high of $168.87 [5]. - Over the past year, the stock has reached a high of $168.98 and a low of $52.38, with a market capitalization of approximately $9.04 billion [5].

Store Operations - As of November 1, 2025, the company operated 1,907 stores across 44 states[93] - The company expects a significant percentage of net sales to continue coming from new stores not included in comparable sales[103] - The company plans to invest approximately $200 million in cash capital expenditures for fiscal 2025, primarily for the construction and opening of about 150 net new stores[131] - The company entered into 102 new retail leases with average terms of approximately 10 years, resulting in future minimum lease payments of approximately $193.5 million[145] Financial Performance - Net sales increased to $1,038.3 million for the thirteen weeks ended November 1, 2025, up 23.1% from $843.7 million for the same period in 2024, driven by a comparable sales increase of $113.8 million and a non-comparable sales increase of $80.8 million[114] - Comparable sales rose by 14.3%, attributed to a 7.2% increase in the number of transactions and a 6.7% increase in the average dollar value of transactions[115] - Gross profit for the thirteen weeks ended November 1, 2025, was $351.4 million, reflecting a 36.2% increase from $258.0 million, with gross margin improving to 33.8% from 30.6%[117] - Selling, general and administrative expenses rose to $308.1 million, a 19.1% increase from $258.6 million, while as a percentage of net sales, these expenses decreased to 29.7% from 30.7%[118] - Net income surged to $36.5 million for the thirteen weeks ended November 1, 2025, compared to $1.7 million in the prior year, marking an increase of $34.8 million[121] - For the thirty-nine weeks ended November 1, 2025, net sales reached $3,035.7 million, up 22.1% from $2,485.6 million, driven by a non-comparable sales increase of $282.6 million and a comparable sales increase of $267.5 million[122] - Net income for the thirty-nine weeks ended November 1, 2025, increased to $120.4 million, an 82.0% rise from $66.2 million in the same period of 2024[129] Costs and Expenses - Cost of goods sold increased to $686.9 million, a 17.3% rise from $585.7 million, primarily due to higher merchandise costs and store occupancy costs from new store openings[116] - SG&A expenses are expected to increase in future periods due to ongoing store growth[109] Cash Flow and Financing - Net cash provided by operating activities for the thirty-nine weeks ended November 1, 2025, was $145.5 million, an increase of $78.4 million compared to the same period in 2024[138] - Net cash used in investing activities for the thirty-nine weeks ended November 1, 2025, was $121.7 million, an increase of $91.0 million compared to the same period in 2024[139] - Net cash used in financing activities for the thirty-nine weeks ended November 1, 2025, was $4.6 million, a decrease of $41.9 million compared to the same period in 2024[140] - As of November 1, 2025, the company had approximately $220 million available under its Revolving Credit Facility, with no direct borrowings outstanding[133] - The company had approximately $220 million available on its line of credit, net of $5 million in outstanding letters of credit[152] - The interest rate on borrowings under the Revolving Credit Facility ranges from a base rate plus an applicable margin of 0.125% to 0.50% or SOFR plus a margin of 1.12% to 1.50%[152] - The company does not expect an immediate 100 basis point change in interest rates to materially affect its cash flows or operating results due to the short-term nature of its investment portfolio[150] Risks and Challenges - The company faces risks such as inflation, supply chain disruptions, and increased competition from other retailers[91] - The company’s business is affected by various factors including consumer preferences, competition, and economic trends[106] - The company seeks to minimize the impact of inflation on its operations by sourcing from different vendors and changing its product mix[153] Operational Efficiency - Operating income is used as an indicator of business productivity and ability to manage SG&A expenses[110] - The increase in operating cash flows was primarily due to improved store performance, offset by higher income taxes paid and changes in working capital[138] - Gross profit is calculated as net sales minus cost of goods sold, with gross margin being gross profit as a percentage of net sales[104]

Core Insights - Five Below, Inc. (FIVE) reported strong third-quarter fiscal 2025 results, with both net sales and earnings exceeding expectations, leading to an upward revision of its fiscal 2025 outlook [1][9] Financial Performance - Adjusted earnings per share reached 68 cents, surpassing the Zacks Consensus Estimate of 22 cents, and increased by 61.9% from 42 cents in the same quarter last year [4] - Net sales amounted to $1.04 billion, reflecting a 23.1% year-over-year increase and exceeding the Zacks Consensus Estimate of $970 million [4] - Comparable sales grew by 14.3% year over year, driven by higher transaction volumes and ticket sizes [4] Operational Highlights - The company experienced solid operational momentum due to increased traffic from digital marketing, successful market openings, and enhanced in-store experiences [2] - Customer engagement was bolstered through seasonal promotions and a broader merchandising strategy, including products priced above $5 and more licensed offerings [3] Margin and Cost Analysis - Adjusted gross profit increased by 25.6% year over year to $351.8 million, with the adjusted gross margin rising approximately 70 basis points to 33.9% [5] - Selling, general and administrative (SG&A) costs rose 20.4% to $259.2 million, but as a percentage of net sales, SG&A costs decreased by approximately 50 basis points to 25% [6] - Adjusted operating income was $45.1 million, up from $27.6 million in the same quarter last year, with an adjusted operating margin of 4.3% [6] Store Expansion - Five Below opened 49 net new stores, bringing the total to 1,907 stores across 44 states, marking a 9% increase from the previous year [8] - The company plans to open 150 additional stores by the end of fiscal 2025, aiming for a total of 1,921 stores [8] Future Guidance - For the fourth quarter of fiscal 2025, net sales are expected to be between $1.58 billion and $1.61 billion, with a projected 6-8% increase in comparable sales [10] - The company anticipates net income for the fourth quarter to be between $186 million and $196 million, with adjusted earnings per share expected to range from $3.34 to $3.52 [11][12] Updated Fiscal 2025 Outlook - Five Below revised its fiscal 2025 net sales projection to $4.62-$4.65 billion, up from $4.44-$4.52 billion, indicating stronger anticipated performance [15] - The adjusted operating margin is expected to be 8.9% at the mid-point, with net income forecasted between $306 million and $316 million [16] - Earnings per share are projected to be between $5.51 and $5.69, reflecting an increase from the previous guidance [17]

Core Insights - Five Below Inc reported third-quarter revenue of $1.04 billion, exceeding estimates of $983.07 million, and adjusted earnings of 68 cents per share, surpassing estimates of 24 cents per share [1][2] Financial Performance - The company achieved its second consecutive quarter of over $1 billion in sales and reported robust double-digit same-store sales growth [2] - For the fourth quarter, Five Below guided revenue between $1.58 billion and $1.61 billion, with adjusted earnings projected between $3.36 and $3.54 per share, while analysts anticipated revenue of $1.56 billion and adjusted earnings of $3.10 per share [2] Full-Year Guidance - Five Below raised its full-year revenue guidance from $4.44 billion to $4.52 billion to a new range of $4.63 billion to $4.65 billion, compared to estimates of $4.57 billion [3] - The company also increased its full-year adjusted earnings outlook from a range of $4.76 to $5.16 per share to an updated range of $5.71 to $5.89 per share, against estimates of $5.18 per share [3] Stock Performance - Following the earnings announcement, Five Below shares fell 0.2% to trade at $162.84 [3] Analyst Ratings and Price Targets - Telsey Advisory Group maintained an Outperform rating and raised the price target from $170 to $195 [6] - Mizuho maintained a Neutral rating and raised the price target from $160 to $165 [6] - Wells Fargo maintained an Overweight rating and raised the price target from $175 to $190 [6] - Barclays maintained an Equal-Weight rating and raised the price target from $135 to $160 [6] - UBS maintained a Buy rating and raised the price target from $204 to $210 [6] - Evercore ISI Group maintained an In-Line rating and raised the price target from $175 to $180 [6]

Core Insights - Five Below Inc reported third-quarter results that exceeded estimates for both revenue and earnings per share, indicating strong performance [1][2] - Analyst Joseph Feldman maintained an Outperform rating and raised the price target from $170 to $195, reflecting confidence in the company's growth potential [1] Financial Performance - The third-quarter results were described as "blew away expectations," driven by a customer-centric strategy and effective merchandising [2] - Strong sales were reported across various categories, customer demographics, and income groups, suggesting broad appeal and market penetration [3] Strategic Priorities - The company focuses on three core strategic priorities under CEO Winnie Park: sharpening focus on the core customer, delivering a connected customer journey, and ensuring cross-functional execution [3] - Continued benefits from high single-digit annual unit growth and healthy consumer demand are anticipated, driven by a shift towards value [3] Market Conditions - While tariffs present a challenge, they are being managed effectively and are not as significant a headwind as previously expected [3] - Strong holiday season sales, including during the Black Friday weekend, indicate positive consumer sentiment and spending [3] Stock Performance - Despite the positive results, Five Below's stock experienced a slight decline of 0.3% to $162.65, with a year-to-date increase of 55.0% [4]

Group 1: Dollar General - Dollar General reported better-than-expected third-quarter earnings of $1.28 per share, driven by strong operating margins, and raised its full-year earnings guidance [1] - The stock increased by 10.5% to $121.44, reaching its highest levels since August 2024 after breaking above the $116 resistance level [2] - For 2025, Dollar General's equity is showing a roughly 58% lead [2] Group 2: Five Below - Five Below also raised its profit and revenue forecasts, with third-quarter profits of 68 cents per share more than tripling analyst estimates [3] - The stock experienced a slight pullback, down 1.2% to $161.21, despite receiving 12 price-target hikes following its positive report [3] - Five Below's stock found resistance at the $168 level, which capped a surge to annual highs in late October [3] Group 3: Options Activity - Dollar General saw 14,000 calls and 7,561 puts exchanged, which is 10 times the average daily options volume, with the weekly 12/5 120-strike call being the most popular [2] - Five Below experienced 3,367 calls and 1,628 puts exchanged, five times the typical volume, with the December 175 call being the most popular [4]

Core Insights - Zacks Premium offers various tools to help investors make informed decisions and enhance their confidence in stock market investments [1][2] Zacks Style Scores - Zacks Style Scores are indicators designed to assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - The Growth Score evaluates a company's financial health and future outlook through projected earnings and sales [5] - The Momentum Score capitalizes on price trends and earnings outlook changes to identify optimal investment times [6] - The VGM Score combines all three styles, providing a comprehensive assessment of stocks based on value, growth, and momentum [7] Zacks Rank and Performance - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in portfolio creation, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down their choices [9] - For optimal returns, stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended [10] Stock Highlight: Five Below, Inc. - Five Below is a specialty retailer targeting teenagers with products priced at $5 or below, operating 1,858 stores across 44 states as of August 2, 2025 [12] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating strong growth potential with a forecasted earnings growth of 1.2% for the current fiscal year [13] - Five Below has seen an upward revision in earnings estimates, with the Zacks Consensus Estimate increasing by $0.08 to $5.10 per share, and an average earnings surprise of +62.1% [13][14]

分组1: Five Below - Five Below reported an adjusted EPS of 68 cents, significantly surpassing the expected 24 cents, with revenue exceeding $1 billion compared to the anticipated $983 million [2][3] - The company raised its full-year outlook for the second consecutive quarter, expecting revenue to reach up to $4.65 billion and adjusted EPS as high as 589 cents [5] - Same-store sales surged by 14%, nearly double Wall Street's expectations, indicating strong traction among various consumer demographics [3][5] 分组2: Dollar General - Dollar General's adjusted EPS came in at $1.28, beating the expected 95 cents, with revenue of $10.65 billion slightly above the forecast of $10.64 billion [7][8] - The company raised its full-year EPS guidance to between 630 to 650 cents, up from the previous range of 580 to 630 cents, marking its third consecutive increase in guidance [8][9] - Same-store sales outlook was also improved, now projected between 2.5% to 2.7%, up from the prior estimate of 2.1% to 2.6% [9] 分组3: Kroger - Kroger's adjusted EPS beat expectations at $1.05, but sales fell short at $33.9 billion, leading to a decline in shares by over 3.5% [11][12] - The company narrowed its full-year EPS guidance to a range of 475 to 480 cents, down from 470 to 480 cents, reflecting a mixed performance compared to previous quarters [12][13] - Identical sales results were weaker than expected, prompting a revision of the same-store sales outlook to between 2.8% to 3% [12]