Five Below (FIVE) Expects 12.5% Same-Store Sales Growth in 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Sales Growth Expectation: Five Below anticipates a significant 12.5% increase in same-store sales for 2025, which will drive earnings per share (EPS) from $4.60 in 2024 to at least $6.10, significantly enhancing investor confidence and profitability.
- Management Change Impact: Following the appointment of new CEO Winnie Park, Five Below's price-to-earnings (P/E) ratio has increased, indicating a restoration of investor confidence in the company's future, further driving stock price appreciation and reflecting market approval of its strategic adjustments.
- Pricing Strategy Adjustment: By eliminating the Five Beyond section, Five Below has successfully integrated higher-priced items throughout the store, resulting in a notable increase in same-store sales for 2025, demonstrating the company's potential and flexibility in pricing power, thereby enhancing long-term profitability.
- Expansion Plans: Five Below aims to expand to over 3,500 locations in the long term, with new stores having a payback period of about one year, making this growth strategy an effective use of cash flow while boosting overall margins, and is expected to continue outperforming the S&P 500.
Analyst Views on FIVE
Wall Street analysts forecast FIVE stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for FIVE is 162.31 USD with a low forecast of 110.00 USD and a high forecast of 187.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
9 Buy
9 Hold
1 Sell
Moderate Buy
Current: 198.040
Low
110.00
Averages
162.31
High
187.00
Current: 198.040
Low
110.00
Averages
162.31
High
187.00
About FIVE
Five Below, Inc. is a specialty value retailer offering merchandise targeted at the tween and teen demographics. Its assortment of products, including select brands and licensed merchandise. It is engaged in offering a group of products, including leisure, fashion and home, and snacks and seasonal. Leisure includes items such as sporting goods, games, toys, tech, books, electronic accessories, arts and crafts, and party. Fashion and home include items, such as personal accessories, attitude t-shirts, beauty offerings, home goods and storage options. Snack and seasonal include items, such as seasonal goods, greeting cards, candy and other snacks, and beverages. It also offers its merchandise on the Internet, through its fivebelow.com e-commerce Website, offering home delivery and the option to buy online and pick up in store. It also sells its merchandise through on-demand third-party delivery services to enable its customers to shop online and receive convenient delivery.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
