Five Below Q1 Sales & Earnings Outlook Raised, Stock Jumps 12%

Shares of Five Below, Inc. FIVE jumped 11.9% last Friday after the company announced a raised sales and earnings outlook for the first quarter of fiscal 2025, reflecting strong performance, driven by a renewed emphasis on trend-right products, extreme value offerings and an enhanced in-store experience.

The stock rise was fueled by the company’s announcement of an upcoming leadership transition at the board level, signaling confidence in its long-term strategy and operational momentum.

FIVE Stock Past Three-Month Performance

FIVE’s Raises 1Q25 View

Five Below raised its financial outlook for the first quarter of fiscal 2025, which ended on May 3, 2025. The company expects net sales to reach $967 million, a significant increase over its previous guidance of $905-$925 million. The company reported net sales of $811.9 million in the first quarter of fiscal 2024.

The number of store openings in the quarter is projected at 55, exceeding the earlier mentioned 50. Comparable sales are anticipated to rise 6.7%, marking a strong rebound from the earlier projection of flat to modest 2% growth.

Earnings per share are forecast between 69 cents and 71 cents, up from the previously stated 44-55 cents. Adjusted earnings per share for the fiscal first quarter are expected to be 82-84 cents compared with the prior mentioned 50-61 cents. This compares with the 60 cents reported in the prior-year period.

Five Below’s Leadership Transition

FIVE announced that Tom Vellios, the company’s co-founder and executive chair, will step down from the board following the company’s 2025 annual meeting of shareholders, scheduled for June 12, 2025. Vellios will transition into an advisory role supporting the board and management. His role as the executive chair will formally conclude at the time of the meeting.

Following the meeting and contingent upon shareholder re-election, Mike Devine, a current member of the board and a 12-year veteran, is expected to be appointed non-executive chair. Devine brings substantial public company governance experience, including his current role as chair of the board since 2020 at Deckers Outdoor Corporation DECK — a leading designer and producer of niche footwear and accessories.

More on FIVE

Five Below reflected on its journey to becoming a leading destination for pre-teens and teens, offering trendy, high-quality products at exceptional value. With more than 1,800 stores nationwide, the company realigned its strategy last year, refocusing on product, value and customer experience. This reset, which gained momentum in the third quarter of fiscal 2024, has positioned the company for continued growth.

FIVE emphasized its ongoing commitment to delivering value-driven products and staying true to its customer-first philosophy. The company remains focused on executing its growth strategy while addressing challenges like tariffs. 

However, despite these efforts, Five Below continues to face notable headwinds from a mix of operational and external challenges, particularly rising costs and a more competitive retail landscape. Shares of this Zacks Rank #5 (Strong Sell) company have lost 10.3% in the past three months compared with the industry’s 12.5% decline.

Stocks to Consider

Some better-ranked stocks are The Gap, Inc. GAP and Canada Goose GOOS.

The Gap is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. It flaunts a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for GAP’s fiscal 2025 earnings and revenues indicates growth of 7.7% and 1.5%, respectively, from the fiscal 2024 reported levels. GAP delivered a trailing four-quarter average earnings surprise of 77.5%.

Canada Goose is a global outerwear brand. GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It carries a Zacks Rank #2 (Buy) at present.

The Zacks Consensus Estimate for GOOS’ current fiscal year’s earnings and revenues implies a decline of 1.4% and 4.9%, respectively, from the year-ago actuals. Canada Goose delivered a trailing four-quarter average earnings surprise of 71.3%.

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

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