The S&P 500 continues rewarding investors. After climbing 24% in 2023, the benchmark index finished 2024 up 23%. That's a tremendous 24-month gain.But not all companies have benefited from the rally. Five Below (FIVE -2.63%), which sells a broad range of merchandise targeting teens and tweens with a price point typically under $5, currently trades a gut-wrenching 57% off its peak from August 2021 (as of Jan. 6).Is it time to buy the dip on this growth stock?Five Below's aggressive expansionFive Below is a d ...

Shares of Five Below Inc (NASDAQ:FIVE) are up 5% at $101.88 at last look today, rebounding from last week's 11.1% drop, its worst weekly percentage loss since June. There could be even more room for FIVE to run, if past is precedent, with the retail stock testing a historically bullish trendline. The stock's recent pullback breached $100, a psychologically-significant pivot point in the last month of the year. Plus, per Schaeffer's Senior Quantitative Analyst Rock White, FIVE is within striking distance of ...

A month has gone by since the last earnings report for Five Below (FIVE) . Shares have lost about 14.6% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Five Below due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Five Below Q3 Earnings Surpass Estimates, Gross Mar ...

PHILADELPHIA, PA, Dec. 30, 2024 (GLOBE NEWSWIRE) -- Five Below, Inc. (NASDAQ: FIVE), the trend-right, high-quality extreme-value retailer for teens and pre-teens, today announced that management is currently scheduled to host a fireside chat at the 2025 ICR Conference in Orlando, Florida, on Monday, January 13, 2025, at 10:00 a.m. Eastern Time. The fireside chat will be webcast live at http://investor.fivebelow.com/. An archived replay will be available two hours after the conclusion of the live event. The ...

Stock market investors could be forgiven for thinking Five Below (FIVE 1.01%) was stuck six feet under. Shares of the specialty retailer, known for its bargain prices on trendy merchandise targeted to teens, have declined approximately 52% year to date.Nevertheless, despite a rough first half of 2024, the company reported a strong growth rebound in its latest results with management even hiking full-year guidance. Indeed, the stock has rallied off its lows with multiple indicators pointing to a sustained tu ...

Core Viewpoint - Five Below has experienced a significant decline in stock performance in 2024, down 51% year to date, despite strong long-term returns since its IPO in 2012 [1][4]. Sales Performance - Same-store sales for Five Below have decreased nearly 3% in the first three quarters of 2024 compared to the same period in 2023, indicating weaker sales than investors expected [2]. - Total net sales for 2024 are projected to be $2.5 billion, reflecting a 12% increase, but this is overshadowed by a 27% drop in operating cash flow from $92 million last year to $67 million this year [3]. Management Changes - The abrupt departure of CEO Joel Anderson in July created uncertainty among investors, contributing to the stock's decline [4]. - Five Below has appointed Winnie Park as the new CEO, which may help restore investor confidence and stabilize the company's stock performance [9]. Future Outlook - Five Below plans to increase its store count to 1,771 by the end of fiscal 2024 and aims to open at least 150 additional locations in 2025, representing over 8% growth [6]. - The company’s third-quarter same-store sales showed a surprising increase of almost 1%, suggesting a potential rebound in sales [7]. - Full-year net income for 2024 is expected to be between $240 million and $250 million, down from $301 million in 2023, but further declines in profits are not anticipated for 2025 [8]. - If Five Below achieves double-digit profit growth in 2025 and its valuation improves, the stock could realistically gain 50% or more [10]. Long-term Growth Potential - Five Below is expected to continue opening hundreds of new locations in the coming years, with a short payback period for stores and zero debt, indicating strong long-term growth potential [12]. - Even if gains do not materialize in 2025, the long-term investment opportunity remains promising [13].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock FIVE The Nasdaq Stock Market LLC Form 10-Q (mark one) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 2, 2024. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 00 ...

The discount retailer has almost doubled since bottoming out this summer. A strong quarter and new CEO are leading the charge this week.Shares of Five Below (FIVE 1.72%) have been moving higher in recent weeks. A "beat and raise" quarterly update on Wednesday afternoon and tapping a new CEO should keep gains coming.The cheap-chic retailer has been a wild ride for investors this year. Five Below shares were trading 70% lower year to date when they bottomed out in August. The chain that is popular with teens ...

Financial Data and Key Metrics - Total sales in Q3 2024 increased by 14.6% to $843.7 million, compared to $736.4 million in Q3 2023 [38] - Comparable sales increased by 0.6%, driven by a 1.2% increase in comp ticket, partially offset by a 0.6% decrease in comp transactions [39] - Adjusted gross profit increased by 25.7% to $280.1 million, with adjusted gross margin rising by 290 basis points to 33.2% [41] - Adjusted SG&A as a percentage of sales increased by 180 basis points to 29.9%, primarily due to higher store payroll and fixed cost deleverage [42] - Adjusted operating income was $27.6 million, with an adjusted operating margin of 3.3%, up from 2.2% in the prior year [42] - Adjusted EPS for Q3 2024 was $0.42, compared to $0.26 in Q3 2023 [43] Business Line Performance - The tech, seasonal, style, and candy worlds, representing over half of the business, delivered strong sales performance in Q3 [23] - The beauty, Halloween, tech, and games and toys categories showed positive results from initiatives to add newness and deliver value [24] - The license business was strong across several departments, including newer trends like Sanrio [24] - Five Beyond assortment items, representing extreme value and trend-right products, resonated well with customers [24] Market Performance - The company opened a record 82 new stores in Q3, achieving 18% growth compared to the previous year [22] - New stores were located across 31 states, including Wyoming, with four stores in five states making the top 25 summer or fall brand opening list [23] - New store productivity exceeded expectations, contributing to overall growth [40] Company Strategy and Industry Competition - The company is refocusing on product, value, and store experience, aiming to be the best destination for teens and pre-teens [15] - Five Below is leveraging its scale to deliver trend-right, high-quality products at extreme value, while improving store experience and optimizing cost structure [15] - The company is working on SKU rationalization and productivity, with a focus on reducing SKUs and improving category performance [27] - Five Beyond continues to provide an opportunity to deliver a highly edited assortment of trend-right products at incredible value [28] - The company is investing in labor and streamlining operations to enhance the customer and crew experience [29] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the early signs of progress and the long runway of growth ahead [33] - The company is prepared to mitigate the impact of potential tariffs through vendor collaboration, product reengineering, and sourcing optimization [34] - The holiday season is off to a solid start, with Black Friday weekend results on plan, despite five fewer shopping days between Thanksgiving and Christmas [32] - The company expects to see the impact of merchandise and experience strategy improvements in Q2 2025 [27] Other Important Information - The company ended Q3 with $216.6 million in cash, cash equivalents, and investments, with no debt [44] - Inventory at the end of Q3 was $818 million, with a $21 million incremental reserve for unproductive inventory as part of the new merchandising strategy [45] - The company plans to spend approximately $340 million in growth CapEx, including opening 228 new stores and converting 180 stores to the Five Beyond format [52] Q&A Session Summary Question: Product Allocation and SKU Rationalization - The company is focusing on delivering consistent performance across all worlds, with a renewed emphasis on trend-right, high-quality, extreme-value products targeting kids [59][60] - SKU rationalization and productivity improvements are expected to reduce SKUs, with meaningful reductions anticipated by mid-2025 [61][62] - Price points, particularly $1 to $3 items, remain a key focus, especially during the holiday season [62][63] Question: Benefits of Returning to the Office and Store Growth - The return to the office has improved collaboration and innovation, particularly in merchandising, planning, and allocation [71][72] - Store growth for 2025 is expected to be at the lower end of the 150-180 range, due to selective site selection and landlord delays [74] Question: Q4 Performance and Missed Opportunities - The company used the 2019 holiday season as a benchmark for Q4 2024, expecting a similar 500 basis point differential in comps [81] - While the team has made significant progress, there are still opportunities to improve product assortment and execution in Q4 [82][83] Question: CMO Replacement and Optimal SKU Count - The company is pleased with the current merchandising team and does not plan to replace the CMO [89] - SKU optimization is expected to result in up to a 20% reduction in SKUs, with a focus on rationalization and productivity [91][92] Question: Q3 Improvement Drivers and Tariff Mitigation - The improvement in Q3 was driven by a combination of external factors, such as improved traffic, and internal initiatives, including newness, trend, and value [97][98] - The company plans to mitigate tariff impacts through vendor collaboration, sourcing optimization, and leveraging scale, with price increases as a last resort [103][104] Question: Customer Cohorts and Traffic Improvement - The sequential improvement in traffic was consistent across various income demographics, with no concentration in lower-income consumers [108] Question: Margin Headwinds for 2025 - The company expects to provide more detailed guidance on 2025 margins during the Q4 call, with potential headwinds from labor investments and incentive compensation [114] Question: Q3 Comps and Inventory Write-Off - The Q3 comp improvement was driven by broad performance across categories, including style, tech, and Halloween [119] - The $21 million inventory write-off was recorded within gross profit as a reserve for unproductive inventory [122] Question: Labor Investments and Store Experience - Increased labor investments in Q3, including a 5% increase in average store hours, improved store service levels and in-stock performance [125][128] - The company plans to continue labor investments in 2025, focusing on workload efficiency and store experience [126][128] Question: Competitive Positioning - The company's competitive positioning improved in Q3, driven by a return to trend-right, high-quality, extreme-value products targeting kids [132][133] Question: Q3 Cadence and Key Events - The Q3 comp improvement was consistent with broader retail trends, with customers showing up for key events like Halloween [139][140] Question: Tariff Impact and Sourcing - The company successfully navigated tariffs in 2018-2019, with potential tariff impacts mitigated through vendor collaboration and sourcing optimization [144][145] - Approximately 60% of the company's products are sourced directly or indirectly from China [146] Question: Store Performance by Cohort - The Q3 performance was relatively consistent across store cohorts, with new stores exceeding productivity expectations [155]

Five Below (FIVE) came out with quarterly earnings of $0.42 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.26 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 162.50%. A quarter ago, it was expected that this discount retailer would post earnings of $0.54 per share when it actually produced earnings of $0.54, delivering no surprise.Over the last four quarters, the company has ...