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PHILADELPHIA - Five Below, Inc. (NASDAQ: FIVE), a popular value retailer for pre-teens and teens with a market capitalization of $4.15 billion, announced a forthcoming change in its boardroom, with co-founder Tom Vellios set to step down from his role as Executive Chair. Following the company’s annual shareholder meeting on June 12, 2025, Vellios will transition to an advisory position through the end of 2025. Assuming his re-election, long-serving director Mike Devine is expected to be appointed as the non-executive Chair of the Board.
The company also provided an upbeat financial update, raising its first-quarter guidance for fiscal 2025. Five Below now anticipates net sales of about $967 million, up from the previously forecasted range of $905 million to $925 million. According to InvestingPro data, the company has maintained strong growth with an 8.9% revenue increase over the last twelve months, while nine analysts have recently revised their earnings estimates upward for the upcoming period. The retailer expects to open 55 new stores in the quarter, five more than initially planned. Comparable store sales are projected to rise by approximately 6.7%, a significant increase from the flat to 2% growth previously guided. Moreover, diluted income per common share is estimated to be between $0.69 and $0.71, with adjusted diluted income per share between $0.82 and $0.84, both exceeding earlier projections.
Vellios, who co-founded Five Below in 2002, expressed pride in the company’s growth to over 1,800 stores and its recent business reset that led to a strong third quarter. The company maintains a healthy financial position with a "Fair" overall financial health score according to InvestingPro analysis, which shows liquid assets exceeding short-term obligations with a current ratio of 1.79. Discover more insights about Five Below’s valuation and growth potential in the comprehensive Pro Research Report, available with an InvestingPro subscription. CEO Winnie Park credited Vellios’s commitment to customer-focused value for setting the company’s direction and looked forward to his continued advisory role. Devine, poised to become the new Chair, commended Vellios for establishing a strong brand and culture, and showed enthusiasm for the future under Park’s leadership.
The company’s updated guidance reflects a positive start to the fiscal year, with management set to discuss the first-quarter results and outlook in detail during an earnings call in early June. With a P/E ratio of 16.57 and analysts setting price targets ranging from $57 to $125, InvestingPro analysis indicates the stock is currently undervalued based on its Fair Value assessment. This news release contains forward-looking statements that involve risks related to global supply chain disruptions, expansion plans, and other factors that could affect the company’s financial and operational outlook.
The information in this article is based on a press release statement from Five Below, Inc.
In other recent news, Five Below has been the focus of several analyst updates following its latest earnings report. The company’s fourth-quarter results slightly exceeded expectations, prompting KeyBanc to maintain its Sector Weight rating. Despite this, Truist Securities reduced its price target to $86, citing concerns over tariffs and cost pressures, while maintaining a Hold rating. Similarly, Guggenheim cut its price target to $125, maintaining a Buy rating, and noted the potential impact of tariffs on margins.
Meanwhile, UBS adjusted its price target for Five Below to $110 but upheld a Buy rating, acknowledging the company’s efforts in refreshing product offerings and enhancing customer experience. JPMorgan upgraded Five Below’s stock rating from Underweight to Neutral, although it lowered the price target to $57, reflecting anticipated margin pressures. Analysts highlighted Five Below’s strategic initiatives, such as merchandising improvements and pricing strategies, as key areas for potential growth.
The company is actively navigating challenges like tariffs and increased labor costs, with investments aimed at boosting in-store experiences and marketing. These recent developments indicate a cautious but optimistic outlook from analysts, with a focus on Five Below’s ability to manage external pressures while pursuing its turnaround strategy.
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