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Five Below Posts Q4 Earnings Beat: FY25 Guidance Reflects Tariff Headwinds, Analysts Say
FIVEFive Below(FIVE) Benzinga·2025-03-20 15:02

Core Viewpoint - Five Below Inc. reported strong fourth-quarter earnings, leading to a rise in its share price despite mixed analyst ratings and concerns over future margins due to tariffs [1][5]. Analyst Insights JPMorgan Analysis - Analyst Matthew Boss maintained an Underweight rating with a price target of 98,notingearningsof98, noting earnings of 3.48 per share, surpassing expectations of 3.37pershare,andsamestoresalesof3.03.37 per share, and same-store sales of -3.0%, which was better than the consensus estimate of -3.4% [2]. - Management's guidance for 2025 adjusted earnings is projected at 4.10-4.72pershare,whichis144.72 per share, which is 14% below the mid-point of Street expectations, indicating a potential operating margin contraction to approximately 7.3% [3]. Goldman Sachs Analysis - Analyst Kate McShane kept a Buy rating with a price target of 102, highlighting a 4.0% sales growth to $1.39 billion in the fourth quarter [4]. - The company anticipates significant margin headwinds from tariffs in 2025 but plans to mitigate these through pricing and vendor strategies, with consumer spending behavior remaining stable [5].