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    Five Below (FIVE) Is Up 6.5% After Tariff Relief Hopes and New Value-Focused Store Openings

    Simply Wall St·02/24/2026 06:20:15
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    • In recent weeks, Five Below has continued its expansion by opening a new store at Route 6 Mall near Honesdale and planning to occupy a former Jo-Ann Fabrics space in Sahuarita, while rolling out low-priced seasonal merchandise such as Easter items, outdoor gear, and trend-led products like a US$20 pet carrier and a US$5 edition of Wuthering Heights.
    • Together with analysts’ expectation that a recent Supreme Court tariff ruling could ease cost pressures on Chinese imports, these moves reinforce Five Below’s focus on value for budget-conscious shoppers through a mix of new locations and tightly priced, seasonal assortments.
    • We’ll now examine how the anticipated tariff relief on Chinese imports may reshape Five Below’s investment narrative and medium-term margin outlook.

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    Five Below Investment Narrative Recap

    To own Five Below, you need to believe its value-first, trend-focused model and rapid store expansion can justify today’s premium valuation, while managing tariff, wage, and competition pressures. The recent Supreme Court ruling that could ease Chinese import tariffs directly intersects with the key near term swing factor: gross margin pressure. If tariff volatility does in fact moderate, that would lessen one of the clearest risks in the story, but it does not remove concerns about store saturation or rising labor costs.

    Among the latest developments, the Supreme Court tariff decision, highlighted by Wells Fargo analysts as a potential earnings benefit for Five Below, is the most directly relevant for investors. With roughly fixed price points and heavy exposure to imported merchandise, any reduction in effective tariffs could meaningfully influence how the company balances price, assortment, and profitability in the near term, and may change how you weigh the upside of its store growth against ongoing cost and competition risks.

    But against this potential tariff relief, investors should also be aware of the risk that aggressive store expansion could still...

    Read the full narrative on Five Below (it's free!)

    Five Below’s narrative projects $5.7 billion revenue and $352.1 million earnings by 2028.

    Uncover how Five Below's forecasts yield a $217.33 fair value, in line with its current price.

    Exploring Other Perspectives

    FIVE 1-Year Stock Price Chart
    FIVE 1-Year Stock Price Chart

    While the consensus view focuses on tariff relief and store openings, the most optimistic analysts were already assuming revenue near US$5.3 billion and earnings around US$325 million before this news, so you should expect that such bullish scenarios and concerns about an underdeveloped digital presence could both be revisited as this story evolves.

    Explore 3 other fair value estimates on Five Below - why the stock might be worth as much as $217.33!

    Decide For Yourself

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.