Five Below Faces Challenges Amid Retail Expansion Plans

Five Below's expansion continues, but struggles in same-store sales weigh on its outlook. Investors may need to proceed with caution despite recent revenue growth.

Date: 10-01-2025

AI Rating: 5

Earnings Per Share (EPS)
There is no mention of EPS in the report, thus this metric is not available for analysis.

Revenue Growth
Five Below reported impressive revenue growth, with the top line expanding by 14.6% year over year in Q3 2024 and a remarkable increase of 95% over the past five years. However, this is partially offset by concerns regarding the sustainability of growth given current performance metrics.

Net Income
Net income information is not provided in the report. Therefore, this metric cannot be evaluated.

Profit Margins
The analysis indicates that Five Below has faced a decline in profitability, suffering an operating loss of $606,000 in Q3 compared to an operating profit of $16.1 million the previous year. This deterioration in profitability is a significant concern for investors.

Free Cash Flow (FCF)
No data regarding Free Cash Flow is present in the report, making it impossible to assess this metric.

Return on Equity (ROE)
The report does not provide information on Return on Equity, hence this performance metric is not available for consideration.

Overall, while Five Below shows potential through aggressive expansion and notable revenue growth, the challenges in same-store sales, increased operational losses, and stiff marketplace competition signify risks that could impact stock prices negatively.

Stocks: FIVE WMT AMZN