These Analysts Cut Their Forecasts On Five Below After Weak Results

Five Below, Inc. FIVE reported worse-than-expected first-quarter earnings and lowered its guidance on Wednesday.

Five Below reported quarterly earnings of 60 cents per share which missed the analyst consensus estimate of 63 cents per share. The company reported quarterly sales of $811.86 million which missed the analyst consensus estimate of $836.97 million, according to data from Benzinga Pro.

Five Below said comparable sales decreased by 2.3% versus the first quarter of fiscal 2023.

"While our first quarter sales were disappointing, disciplined cost management enabled us to deliver adjusted EPS within our earnings outlook. Needs-based items such as those in our Candy, Food and Beauty departments outperformed expectations and drove positive sales results. We also saw positive comparable sales from our higher income customers; however, the macro environment disproportionately impacted our core lower income customers, resulting in overall comparable sales declines," said Joel Anderson, President and CEO of Five Below.

Five Below said it sees full-year earnings between $5.00 and $5.40 per share, versus the $6.00 per share estimate, and full-year revenue of between $3.79 billion and $3.87 billion, versus the $4.03 billion estimate.

Five Below shares fell 3.7% to close at $132.79 on Wednesday.

These analysts made changes to their price targets on Five Below after the company reported quarterly results.

  • Telsey Advisory Group cut the price target on Five Below from $220 to $155. Telsey Advisory Group analyst Joseph Feldman maintained an Outperform rating.
  • Morgan Stanley slashed Five Below price target from $210 to $160. Morgan Stanley analyst Simeon Gutman maintained an Overweight rating on the stock.
  • Mizuho analyst David Bellinger maintained Five Below with a Buy and lowered the price target from $215 to $150.

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