These Analysts Cut Their Forecasts On Five Below After Q4 Results

Five Below, Inc. FIVE reported an increase in earnings for its fourth quarter on Wednesday.

Five Below reported quarterly earnings of $3.65 per share, up from $3.07 per share from the same period last year. Quarterly revenue clocked in at $1.34 billion, up from $1.12 billion year-over-year, according to data from Benzinga Pro.

“Holiday 2023 marked a strong end to the year for sales performance as our amazing assortment of Wow product drove yet another quarter of comp transaction growth, led by the Five Beyond format stores. In fiscal 2023, we opened a record 205 new stores and ended the year with over half of our comparable stores in the Five Beyond format. The benefit of strong sales performance to our profitability was offset by higher than anticipated shrink headwinds, resulting in earnings at the low end of our guidance range,” said Joel Anderson, CEO of Five Below.

Five Below sees first-quarter earnings of between 58 cents and 69 cents per share and revenue in the range of $826 million to $846 million, based on opening approximately 55 to 60 new stores and assuming an approximate flat to 2% increase in comparable sales.

Five Below shares gained 1.1% to close at $208.97 on Wednesday.

These analysts made changes to their price targets on Five Below following earnings announcement.

• Telsey Advisory Group cut the price target on Five Below from $230 to $220. Telsey Advisory Group analyst Joseph Feldman maintained an Outperform rating.
• JP Morgan lowered the price target on Five Below from $222 to $215. JP Morgan analyst Matthew Korn maintained an Overweight rating.

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