Five Below Posts Q4 Earnings Beat: FY25 Guidance Reflects Tariff Headwinds, Analysts Say

Shares of Five Below Inc. FIVE were climbing in early trading Thursday after the company reported upbeat fourth-quarter earnings.

Here are some key analyst takeaways.

JPMorgan On Five Below

Analyst Matthew Boss reiterated an Underweight rating and price target of $98.

Five Below reported earnings of $3.48 per share, beating Street expectations of $3.37 per share, with same-store sales of -3.0%, better than consensus estimates of -3.4%, Boss said in a note. The company's results reflect sequential improvement in comps in the back half of the year, he added.

The analyst stated that management guided 2025 adjusted earnings of $4.10-$4.72 per share, 14% below Street expectations at the mid-point, despite broadly in-line sales growth projections. Five Below's guidance "embeds ~180bps of operating margin contraction to ~7.3% at the midpoint (130bps below Street 8.6%) with ~100bps associated with tariff headwinds."

Check out other analyst stock ratings.

Goldman Sachs On Five Below

Analyst Kate McShane maintained a Buy rating and price target of $102.

Five Below's sales grew by 4.0% to $1.39 billion in the fourth quarter, McShane said. Management's 2025 guidance "includes the impact of tariffs on what has been announced so far," she added.

While the company expects significant margin headwinds from tariffs in 2025, it will "try to mitigate them through pricing and vendor strategies," McShane stated. She further wrote, “The consumer seems healthy, with no change in spending behavior.”

FIVE Price Action: Shares of Five Below had risen by 5.40% to $79.67 at the time of publication on Thursday.

Read More: These Analysts Slash Their Forecasts On Five Below After Q4 Results

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