FIVE Stock Rises 4% on Robust Holiday Results and Raised Guidance

Shares of Five Below, Inc. FIVE rose 4.1% in yesterday’s trading session after the company reported strong holiday season sales and raised its outlook for the fourth quarter and fiscal 2025. The upbeat results reflected solid demand for trend-right products and broad-based growth across the store base, helping to lift investor sentiment.

FIVE’s Performance Insights for the Holiday Period

Five Below generated net sales of $1.47 billion during the holiday period, up 23.2% from $1.19 billion reported in the comparable nine-week period from Nov. 3, 2024, through Jan. 4, 2025. Comparable sales for the holiday period rose 14.5%, reflecting strong same-store performance and broad-based demand across categories.

Management stated that holiday results exceeded expectations. Efforts to deliver trend-right products, exceptional value and a more connected customer experience contributed to the strong performance. CEO Winnie Park highlighted that the company’s focus on “the kid and the kid in all of us” helped drive engagement and strengthen the customer journey.

FIVE Stock Past Three-Month Performance

FIVE’s Upbeat Q4 & FY25 Outlook

Five Below now expects fourth-quarter sales of approximately $1.71 billion, with comparable sales growth of about 14.5%. Previously, the company had expected net sales of $1.58 billion to $1.61 billion, with comparable sales growth of roughly 14.7%.

Fourth-quarter earnings expectations have also improved. Earnings per share (EPS) are now projected between $3.93 and $3.98, with adjusted EPS expected in the range of $3.95 to $4.00. Previously, the company had guided EPS of $3.34 to $3.52 and adjusted EPS of $3.36 to $3.54.

For fiscal 2025, Five Below anticipates net sales of approximately $4.75 billion and comparable sales growth of 12.5%, up from its previous expectations of $4.62 billion to $4.65 billion in net sales and comparable sales growth of 9.4% to 10.1%.

Full-year earnings have been raised as well. EPS are expected to range from $6.10 to $6.15, while adjusted EPS are forecast between $6.30 and $6.35. This compares to the earlier outlook of $5.51 to $5.69 in EPS and $5.71 to $5.89 in adjusted EPS. The company registered adjusted EPS of $5.04 in fiscal 2024.

Should You Invest in FIVE Stock?

Five Below continues to target its core teen and pre-teen demographic with high-quality, trend-right products at exceptional value. The company is refining its merchandising strategy, enhancing category performance and optimizing product selection to focus on customer value.

FIVE’s holiday performance and fiscal guidance highlight the company’s strategic focus and operational strength. As it enters 2026, initiatives to enhance product offerings, optimize merchandising and improve the overall customer experience are expected to support sustained growth. Shares of this Zacks Rank #1 (Strong Buy) company have advanced 35.8% in the past three months compared with the industry’s rise of 6.4%.

Other Key Picks

We have highlighted three other top-ranked stocks, namely Ulta Beauty Inc.  ULTA, The Gap, Inc. GAP and Sally Beauty Holdings, Inc. SBH.

Ulta Beauty offers a wide range of products, including cosmetics, fragrance, skincare, hair care, bath and body products, and salon styling tools in stores. It presently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Ulta Beauty’s fiscal 2025 earnings and sales indicates growth of 0.7% and 9.6%, respectively, from the fiscal 2024 reported figures. ULTA delivered a trailing four-quarter average earnings surprise of 15.7%.

Gap is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. It currently flaunts a Zacks Rank of 1.

The Zacks Consensus Estimate for Gap’s fiscal 2026 earnings and sales implies a decline of 2.7% and growth of 1.8%, respectively, from the year-ago actuals. GAP delivered a trailing four-quarter average earnings surprise of 19.1%.

Sally Beauty is an international specialty retailer and distributor of professional beauty supplies. It currently carries a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for Sally Beauty’s fiscal 2026 earnings and sales indicates growth of 8.4% and 1.2%, respectively, from the fiscal 2025 reported levels. SBH delivered a trailing four-quarter average earnings surprise of 10.3%.

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This article originally published on Zacks Investment Research (zacks.com).

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