Five Below (FIVE) Expects 12.5% Same-Store Sales Growth in 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 19 2026
0mins
Should l Buy FIVE?
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.
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Analyst Views on FIVE
Wall Street analysts forecast FIVE stock price to fall
19 Analyst Rating
11 Buy
7 Hold
1 Sell
Moderate Buy
Current: 234.920
Low
132.00
Averages
193.47
High
242.00
Current: 234.920
Low
132.00
Averages
193.47
High
242.00
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.
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- Strong Market Performance: Five Below successfully attracts budget-conscious consumers by offering trendy merchandise at reasonable prices, establishing itself as a shopping destination and standing out in the retail market.
- Upgraded Earnings Expectations: Eight analysts have raised the current year earnings estimate from $6.12 to $7.84, with next year's EPS expected to grow by 13.8%, indicating strong profit growth potential for the company.
- Expansion Potential: Five Below has significant store growth opportunities across the U.S., making it one of the best expansion engines in specialty retail, which is expected to provide investors with sustained earnings growth and long-term valuation support.
- Stable Consumer Demand: In a market where consumers are still hunting for deals, Five Below's business model effectively meets the demand for fun products, ensuring its competitive advantage in the retail industry.
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- Unique Competitive Edge: Ollie's ability to purchase cheap excess inventory at scale is a key driver behind Jefferies analyst Randal Konik's upgrade, underscoring the company's leading position in the discount retail sector.
- Significant Expansion Potential: With approximately 645 stores compared to its closest competitor's 159, Ollie's management sees growth opportunities to expand to 1,300 stores, indicating robust growth prospects.
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- Strong Market Performance: Five Below successfully attracts budget-conscious consumers by offering trendy merchandise at reasonable prices, establishing itself as a shopping destination and standing out in the retail market.
- Upgraded Earnings Expectations: Eight analysts have raised the current year earnings estimate from $6.12 to $7.84, with next year's EPS expected to grow by 13.8%, indicating strong profit growth potential for the company.
- Expansion Potential: Five Below has significant store growth opportunities across the U.S., making it one of the best expansion engines in specialty retail, which is expected to provide investors with sustained earnings growth and long-term valuation support.
- Stable Consumer Demand: In a market where consumers are still hunting for deals, Five Below's business model effectively meets the demand for fun products, ensuring its competitive advantage in the retail industry.
See More
Ollie's Bargain Outlet Upgraded to Buy by Jefferies
- Market Underappreciation: Jefferies upgraded Ollie's Bargain Outlet from hold to buy and raised its price target from $120 to $130, indicating about 42% potential upside, highlighting the market's undervaluation of its growth potential.
- Unique Competitive Edge: Ollie's ability to purchase cheap excess inventory at scale is a key driver behind Jefferies analyst Randal Konik's upgrade, underscoring the company's leading position in the discount retail sector.
- Significant Expansion Potential: With approximately 645 stores compared to its closest competitor's 159, Ollie's management sees growth opportunities to expand to 1,300 stores, indicating robust growth prospects.
- Changing Market Dynamics: As retail pressures increase, more clearance goods are available at discounted prices, while fewer buyers are competing, enhancing Ollie's sourcing advantages and further solidifying its market position.
See More
JPMorgan Updates Top Tech Stock Picks Amid Market Volatility
- New Tech Picks: JPMorgan added software companies JFrog and Palo Alto Networks to its top stock picks in April, indicating optimism for AI-related stocks, despite JFrog's 23% year-to-date decline, analysts believe it has significant AI growth potential.
- Market Rally: Following reports of a potential end to the Middle East conflict, all three major indexes posted gains on the last day of March, marking their best daily performance since May, even as oil prices fluctuated above $100 per barrel due to the war.
- Aramark's Return: JPMorgan reinstated food, uniform, and facilities provider Aramark to its top picks after the company provided a
See More
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- AI Paradox Unveiled: Jackson's analysis of 716 SaaS earnings calls over two decades reveals that companies in the top quintile of AI language density underperformed the bottom quintile by 5.4 percentage points over the following 90 days, indicating an overreaction to AI hype in the market.
- Shifting Market Sentiment: He argues that many SaaS firms are overvalued due to growth narratives driven by AI, facing risks of slowing organic growth, rising customer acquisition costs, and deteriorating pricing power, particularly as enterprise spending tightens.
- Short Position Strategy: Jackson has established short positions in Salesforce, Asana, DocuSign, and Atlassian, all of which are trading at multi-year lows, with Asana hitting an all-time low, reflecting a pessimistic outlook on their future performance.
- Comparative Industry Analysis: While companies like CrowdStrike and Zscaler benefit from AI advancements, Jackson believes the market is punishing all related firms too harshly, leading to misjudgments in investment choices among investors.
See More
Major Executives Sell Significant Holdings, Raising Market Concerns
- Executive Sell-Off: ConocoPhillips CEO Ryan Lance sold 506,800 shares at an average price of $127.26 for a total of $64.5 million, and despite a 34% rise in stock over the past three months, this sell-off may raise concerns about future performance.
- Nvidia Executive Transaction: Nvidia Director Mark Stevens sold 221,700 shares at an average price of $173.68 for a total of $38.5 million, and with only a 1% increase in stock over the last three months, this action could be interpreted as a bearish signal for the market.
- GitLab Bulk Sale: GitLab Director Matthew Jacobson sold 1,159,900 shares at an average price of $22.72 for a total of $26.4 million, with shares down 41% over the past three months, indicating executive concerns about the company's outlook.
- Five Below Insider Selling: Five Below Director Ronald Sargent sold 20,000 shares at an average price of $231.51 for a total of $4.6 million, and although the stock rose 27% in the last three months, insider selling may still impact investor confidence.
See More
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- Allstate Earnings Outlook: Allstate's expected EPS growth rate for the next three to five years is 19%, significantly higher than the industry average of 7.7%, with a 7.5% upward revision in earnings estimates over the past 60 days, indicating strong financial performance potential.
- Five Below Growth Momentum: Five Below's stock surged 200.1% over the past year, with a projected earnings growth rate of 17.5% for fiscal 2027, and a 16.2% increase in earnings estimates over the past 60 days, reflecting robust performance in the retail sector.
- BrightSpring Health Services: BrightSpring's earnings growth estimate for 2026 stands at an impressive 61%, with a market capitalization of $8.4 billion and a 15% upward revision in earnings estimates over the past 60 days, showcasing significant growth potential in the healthcare services sector.
See More
