Five Below’s Q4 Earnings On Deck: Retail Traders Stay Wary Amid Consumer Demand Worries

Five Below shares have dropped 11% in the past five trading days ahead of the specialty discount retailer’s fiscal fourth-quarter earnings, with retail sentiment downbeat.

Wall Street analysts expect Five Below to post earnings per share of $3.38 on revenue of $1.38 billion on Wednesday after the market close.

The company has beaten EPS estimates in all four quarters in the past four quarters, and revenue estimates thrice in the same period.

Truist analyst Scot Ciccarelli lowered the firm's price target to $93 from $118 with a ‘Buy’ rating as part of its research note previewing Q4 results, The Fly reported.

According to the analyst, a softer start in the first quarter is likely for most consumer majors due to severe winter weather in most of the U.S. and changes brought about by the new President Trump. Management teams are likely to provide a “somewhat conservative” initial view for the year, the report added, citing Truist.

Sentiment on Stocktwits remained in the ‘bearish' zone compared to a week ago. Message volume was in the ‘normal’ zone compared to 'low' in the same period.

FIVE sentiment meter and message volume on March 16

One bearish watcher predicted the stock to fall below $30 this week.

Another bearish commenter referred to retaliatory tariffs.

However, one bullish trader was optimistic as spenders are likely to shop there in times when they pull back on other purchases.

For the third quarter, its earnings per share came in at $0.42, beating the $0.17 estimate from Wall Street.

While its comparable sales increased by 0.6% and net sales increased 14.6% to $843.7 million from $736.4 million in the same period the previous year.

Five Below is a “value” retailer that sells sporting goods, games, toys, tech, books, electronic accessories, and arts and crafts priced between $1 and $5.

Five Below stock is down 30% year-to-date.

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