- Five Below‘s 4Q net sales were $1.34 billion, marking a 19% increase year-over-year, but they missed the estimated $1.35 billion.
- The company’s EPS was $3.65, up from $3.07 in the same period last year, but below the predicted $3.78.
- The total number of Five Below locations increased by 4.3% quarter-on-quarter to 1,544 stores, matching estimates.
- Gross capital expenditures are expected to reach around $365 million in fiscal 2024.
- Despite strong sales performance, higher than expected shrink headwinds led to earnings at the lower end of the guidance range.
- According to Joel Anderson, President and CEO of Five Below, Holiday 2023 was a successful period for sales performance, driven by a range of Wow product and particularly strong performance from Five Beyond format stores.
- Five Below plans to continue driving growth in the coming year, supported by five strategic pillars. This includes the opening of between 225 and 235 new stores, approximately 200 store conversions to the Five Beyond format, and the expansion of two distribution centers.
- Based on the company’s learnings from 2023, additional shrink mitigation initiatives have been implemented.
- The company currently has 18 buys, 5 holds, and 0 sells.
A look at Five Below Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Five Below, Inc. is a specialty value retailer that offers a wide range of products including crafts, party supplies, candy, sports equipment, and seasonal items. The company, which operates throughout the United States, has been given a Smartkarma Smart Score of 3 out of 5. This score is based on various factors such as value, dividend, growth, resilience, and momentum.
According to the Smart Scores, Five Below has a strong momentum score of 5, indicating that the company is currently performing well and has the potential for future growth. Its growth score of 4 also suggests that the company has a positive long-term outlook. However, Five Below‘s value score of 2 and resilience score of 2 show that the company may not be as undervalued or as resilient as some of its competitors. Additionally, Five Below has a dividend score of 1, which may not be attractive to investors seeking regular dividend payouts.
In summary, Five Below is a specialty value retailer that offers a diverse range of products to its customers. While the company has a strong momentum and growth potential, its value and resilience scores may not be as favorable. Investors should carefully consider these factors before making any investment decisions regarding Five Below.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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