Five Below To Benefit From 'Shift Toward Value,' Analyst Says Q3 Results 'Blew Away Expectations'

Five Below Inc (NASDAQ:FIVE) third-quarter results that beat estimates for both revenue and earnings per share came in better than expected, according to one analyst.

The Analyst: Telsey analyst Joseph Feldman maintained an Outperform rating on Five Below and raised the price target from $170 to $195.

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The Analyst Takeaways: Five Below's third-quarter results "blew away expectations," Feldman said in a new investor note.

"This strong performance reflects the customer-centric strategy and ongoing gains from newness in merchandising, sharper pricing, effective marketing, and improved in-store execution," Feldman said.

The analyst highlighted the company's three core strategic priorities under CEO Winnie Park, which are sharpening the focus on the core customer, delivering a connected customer journey and having cross-functional execution.

Third-quarter sales were strong across categories, customers and income groups, the analyst said.

"Five Below should also continue to benefit from HSD annual unit growth and healthy consumer demand, driven by the ongoing consumer shift toward value."

Feldman said tariffs are a headwind for the company, but not as much as anticipated and that the company is "managing them effectively."

The company said holiday season sales have been strong, including the Black Friday weekend.

The analyst highlighted the company's raised guidance, which was better than expected.

Price Action: FIVE stock is down 0.3% to $162.65 on Thursday versus a 52-week trading range of $52.38 to $168.98. Five Below shares are up 55.0% year-to-date in 2025.

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• Five Below Q3 Preview: Analyst Expects ‘Sizable’ Beat, Sees More Stock ‘Upside Potential’

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