What Happened?
Shares of discount retailer Five Below (NASDAQ: FIVE) jumped 7% in the afternoon session after the company reported an impressive "beat and raise" first quarter 2025 results which beat analysts' revenue, EPS, and EBITDA expectations. The quarter saw a significant lift in transactions as new stores performed well ahead of expectations.
Looking ahead, FIVE raised its full-year revenue and EPS guidance, though the EPS outlook still fell short of Wall Street's estimates. Zooming out, we think this was a mixed yet decent quarter.
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What The Market Is Telling Us
Five Below’s shares are very volatile and have had 29 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 9 days ago when the stock gained 6.7% on the news that the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
Five Below is up 28.5% since the beginning of the year, and at $127.28 per share, it is trading close to its 52-week high of $132.79 from June 2024. Investors who bought $1,000 worth of Five Below’s shares 5 years ago would now be looking at an investment worth $1,157.
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