Five Below Sees Strong Q1 As Analyst Flags Tariff Risk In Back Half Of 2025

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Five Below Inc's FIVE first-quarter results and full-year guidance reflects "ongoing gains from newness in merchandising, effective marketing, sharper pricing, and improved in-store execution," partly offset by tariff-related pressures expected in the back half of the year, according to Telsey Advisory Group.

The Five Below Analyst: Analyst Joseph Feldman maintained a Market Perform rating while raising the price target from $90 to $128.

The Five Below Thesis: The company's earnings came in at 86 cents per share, topping consensus of 83 cents per share, with an operating margin of 6.1% beating consensus of 5.8%, Feldman said in the note.

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Five Below's total transactions grew by 6.2% and average ticket rose 0.9% in the quarter, reflecting strong store traffic and conversion, he added.

The comp and earnings guidance of 7.0%-9.0% and 50-62 cents per share suggest that the healthy trends have continued in the second quarter, the analyst stated.

"That said, the 2H25 outlook remains soft, primarily due to greater pressure from tariffs, ongoing investments, and deleverage on a lower expected comp," he further wrote.

FIVE Price Action: Shares of Five Below had risen by 4.64% to $126.86 at the time of publication on Tuesday.

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$127.37-0.51%

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