Update shared on27 Aug 2025
Fair value Increased 1.51%Analysts modestly raised Five Below’s price target to $141.11, citing robust same-store sales, effective strategic execution, and potential margin tailwinds, while remaining cautious on near-term growth risks and macro headwinds.
Analyst Commentary
- Bullish analysts cite consistently strong same-store sales growth, driven by both increased traffic and higher average ticket sizes, as a key catalyst for raising price targets.
- Many are positive on recent Q1 results, pointing to management's successful strategic initiatives in merchandising, marketing, in-stock levels, and store labor hours, which are boosting performance even in a challenging macro environment.
- Several note that margin improvement and upside could continue if Five Below maintains price gaps vs. peers and effectively manages ongoing tariff and cost pressures.
- Some bullish analysts expect multiple further catalysts including the potential for lower shrink, benefits from China tariff relief, and improvement in trend-right/fast-turning merchandising.
- Bearish analysts retain caution due to lingering risks—uncertainty regarding the timing and magnitude of transformation benefits, persistent tariff threats, the potential for tougher comps ahead, and concerns about limited near-term EPS growth and lack of multiple expansion.
What's in the News
- Five Below was dropped as a constituent from multiple Russell growth indices and benchmarks, including the Russell 1000, 2500, 3000, Small Cap, Midcap, and 3000E Growth indices.
- The company completed a buyback of 449,324 shares for $69.46 million, representing 0.82% of outstanding shares under the previously announced repurchase program.
- Five Below and Uber Technologies launched nationwide delivery of Five Below products on Uber Eats, covering over 1,500 stores.
- The company raised full-year fiscal 2025 guidance, projecting net sales of $4.33–$4.42 billion, comparable sales up 3–5%, and net income of $223–$249 million.
- CFO Kristy Chipman will step down for personal reasons; COO Kenneth R. Bull was appointed interim CFO.
Valuation Changes
Summary of Valuation Changes for Five Below
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $139.00 to $141.11.
- The Future P/E for Five Below remained effectively unchanged, moving only marginally from 31.22x to 31.54x.
- The Net Profit Margin for Five Below remained effectively unchanged, moving only marginally from 5.71% to 5.74%.
Disclaimer
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