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Five Below (FIVE) is Staying Ahead of the Curve: Here's How
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Five Below, Inc. (FIVE - Free Report) , a specialty value-chain retailer, has gained recognition for its diverse selection of fashionable and premium goods. The company's objective is to craft an immersive shopping journey for its customers, particularly catering to the preferences of tweens, teenagers and beyond. By predominantly offering items priced between $1 and $5, and including remarkably budget-friendly choices, the brand guarantees that patrons can readily adopt the latest and most-coveted merchandise.
In the past year, shares of this Zacks Rank #3 (Hold) company have rallied 40.3% compared with the industry’s growth of 12.7%. Also, the stock has outpaced the Retail and Wholesale sector’s rise of 3.9%.
Further, the Zacks Consensus Estimate for fiscal 2023 and 2024 earnings imply year-over-year increases of 19.2% and 21.2%, respectively. The Zacks Consensus Estimate for sales for the current and next financial years is pegged at $3.56 billion and $4.19 billion, indicating year-over-year increases of 15.6% and 17.8%, respectively. The impressive long-term earnings growth rate of 22.1% emphasizes the intrinsic strength of the company.
Impressively, Five Below's stock price has almost doubled over the past five years. The stock's significant appreciation suggests that investors have found value in the company's business model, growth potential and overall performance.
Image Source: Zacks Investment Research
Let’s Delve Deeper
Five Below has been committed to meeting customer demand by adjusting its product offerings. The company's strong sales performance and transaction patterns point to a growing customer base, attracted by its value-driven approach and in-trend merchandise. Despite the challenges, the company aims to expand its market share through record store openings and innovative product offerings.
On brand strategy, the company’s digital marketing investments continue to grow and reach more customers to build brand awareness, drive customer traffic and position Five Below as a go-to destination for fun.
FIVE is focused on providing convenient shopping experiences, including assisted checkout and same-day delivery services. It digitized vendor transactions, implemented a core merchandising platform, and utilized cloud-based data and analytics to manage inventory effectively. A new vendor management platform has been introduced to enhance transparency and real-time communication, and efforts are underway to develop a planning system and replenishment forecasting tool.
Five Below has also introduced curbside pickup and a mobile app, while expanding its partnership with Instacart for expedited same-day delivery. The addition of Venmo and PayPal as payment options has enhanced the customer experience.
With 1,367 stores as of first-quarter fiscal 2023, the company sees significant opportunities for further expansion throughout the United States. Five Below aims to drive continued growth by prioritizing an efficient cost structure, strong sales per store, supply-chain initiatives, and economies of scale.
Wrapping Up
Despite the challenging macro environment, FIVE is pleased with its financial results for first-quarter 2023 and operational achievements. In the last reported quarter’s earnings call, management projected net sales between $755 million and $765 million for the second quarter of fiscal 2023, considering the inauguration of around 40 stores and an expected 2-3% rise in comparable sales.
Bet Your Bucks on These Hot Stocks
Here we have highlighted three better-ranked stocks, namely GIII Apparel Group (GIII - Free Report) , Urban Outfitters, Inc. (URBN - Free Report) and lululemon athletica (LULU - Free Report) .
GIII Apparel, which is a manufacturer, designer and distributor of apparel and accessories, sports a Zacks Rank #1 (Strong Buy) at present. The company had a significant EPS surprise of 244.44% in the last reported quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GIII Apparel’s current financial-year sales and earnings suggests growth of 1.9% and 0.4% from the year-ago period’s actuals. GIII has a trailing four-quarter earnings surprise of 47.4%, on average.
Urban Outfitters, which specializes in the retail and wholesale of general consumer products, has a Zacks Rank #2 (Buy) at present. The expected EPS growth rate for three to five years is 18%.
The Zacks Consensus Estimate for Urban Outfitters’ current financial-year sales and earnings suggests growth of 5.3% and 60% from the year-ago period’s reported figure. URBN has a trailing four-quarter earnings surprise of 12.2%, on average.
lululemon, a yoga-inspired athletic apparel company, currently carries a Zacks Rank #2. The company has an expected EPS growth rate of 20% for three to five years.
The Zacks Consensus Estimate for lululemon’s current financial-year sales and earnings suggests growth of 17.1% and 18.4%, respectively, from the year-ago period’s reported figures. LULU has a trailing four-quarter earnings surprise of 9.9%, on average.
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Five Below (FIVE) is Staying Ahead of the Curve: Here's How
Five Below, Inc. (FIVE - Free Report) , a specialty value-chain retailer, has gained recognition for its diverse selection of fashionable and premium goods. The company's objective is to craft an immersive shopping journey for its customers, particularly catering to the preferences of tweens, teenagers and beyond. By predominantly offering items priced between $1 and $5, and including remarkably budget-friendly choices, the brand guarantees that patrons can readily adopt the latest and most-coveted merchandise.
In the past year, shares of this Zacks Rank #3 (Hold) company have rallied 40.3% compared with the industry’s growth of 12.7%. Also, the stock has outpaced the Retail and Wholesale sector’s rise of 3.9%.
Further, the Zacks Consensus Estimate for fiscal 2023 and 2024 earnings imply year-over-year increases of 19.2% and 21.2%, respectively. The Zacks Consensus Estimate for sales for the current and next financial years is pegged at $3.56 billion and $4.19 billion, indicating year-over-year increases of 15.6% and 17.8%, respectively. The impressive long-term earnings growth rate of 22.1% emphasizes the intrinsic strength of the company.
Impressively, Five Below's stock price has almost doubled over the past five years. The stock's significant appreciation suggests that investors have found value in the company's business model, growth potential and overall performance.
Image Source: Zacks Investment Research
Let’s Delve Deeper
Five Below has been committed to meeting customer demand by adjusting its product offerings. The company's strong sales performance and transaction patterns point to a growing customer base, attracted by its value-driven approach and in-trend merchandise. Despite the challenges, the company aims to expand its market share through record store openings and innovative product offerings.
On brand strategy, the company’s digital marketing investments continue to grow and reach more customers to build brand awareness, drive customer traffic and position Five Below as a go-to destination for fun.
FIVE is focused on providing convenient shopping experiences, including assisted checkout and same-day delivery services. It digitized vendor transactions, implemented a core merchandising platform, and utilized cloud-based data and analytics to manage inventory effectively. A new vendor management platform has been introduced to enhance transparency and real-time communication, and efforts are underway to develop a planning system and replenishment forecasting tool.
Five Below has also introduced curbside pickup and a mobile app, while expanding its partnership with Instacart for expedited same-day delivery. The addition of Venmo and PayPal as payment options has enhanced the customer experience.
With 1,367 stores as of first-quarter fiscal 2023, the company sees significant opportunities for further expansion throughout the United States. Five Below aims to drive continued growth by prioritizing an efficient cost structure, strong sales per store, supply-chain initiatives, and economies of scale.
Wrapping Up
Despite the challenging macro environment, FIVE is pleased with its financial results for first-quarter 2023 and operational achievements. In the last reported quarter’s earnings call, management projected net sales between $755 million and $765 million for the second quarter of fiscal 2023, considering the inauguration of around 40 stores and an expected 2-3% rise in comparable sales.
Bet Your Bucks on These Hot Stocks
Here we have highlighted three better-ranked stocks, namely GIII Apparel Group (GIII - Free Report) , Urban Outfitters, Inc. (URBN - Free Report) and lululemon athletica (LULU - Free Report) .
GIII Apparel, which is a manufacturer, designer and distributor of apparel and accessories, sports a Zacks Rank #1 (Strong Buy) at present. The company had a significant EPS surprise of 244.44% in the last reported quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GIII Apparel’s current financial-year sales and earnings suggests growth of 1.9% and 0.4% from the year-ago period’s actuals. GIII has a trailing four-quarter earnings surprise of 47.4%, on average.
Urban Outfitters, which specializes in the retail and wholesale of general consumer products, has a Zacks Rank #2 (Buy) at present. The expected EPS growth rate for three to five years is 18%.
The Zacks Consensus Estimate for Urban Outfitters’ current financial-year sales and earnings suggests growth of 5.3% and 60% from the year-ago period’s reported figure. URBN has a trailing four-quarter earnings surprise of 12.2%, on average.
lululemon, a yoga-inspired athletic apparel company, currently carries a Zacks Rank #2. The company has an expected EPS growth rate of 20% for three to five years.
The Zacks Consensus Estimate for lululemon’s current financial-year sales and earnings suggests growth of 17.1% and 18.4%, respectively, from the year-ago period’s reported figures. LULU has a trailing four-quarter earnings surprise of 9.9%, on average.