Five Below Stock Rises Ahead Of Q3 Earnings: Retail’s Cautious

Specialty retailer Five Below's ($FIVE) stock was up 5% on Tuesday afternoon ahead of the company's third-quarter earnings, but retail sentiment turned cautious.

Wall Street analyst expect the company to post earning per share of $0.17 on revenues of $801.48 million. The Philadelphia-based retailer has missed earnings forecasts thrice in the past four quarters, according to Stocktwits data. The company is set to release earnings after market close on Wednesday.

Retail sentiment on the stock fell to 'neutral' (49/100) from 'bullish' (56/100) a week ago. Message volumes, in the meantime, have climbed to the 'high' zone from normal.

This came despite a price target revision from Citi, which raised its price target  to $96 from $85 while keeping a 'Neutral' rating on the stock, The Fly.com reported. The firm anticipates a Q3 earnings beat driven by stronger comps of negative 3% versus the consensus estimate of down 5.4%, the report added.

FIVE sentiment meter and message volumes on Dec 3.

Five Below is also facing lawsuits from certain shareholders in relation to its restating the decline in comparable sales in the second-quarter and the sudden departure of its president and CEO. 

"Our second quarter results fell short of what we know this business is capable of delivering. Our response to the macro pressures of the last few years and the evolving consumer environment has required even greater execution, compelling and differentiated assortments and focus on the customer," Ken Bull, Interim CEO, president and COO of Five Below said at the time of its last earnings release.

The company also repurchased about 85,000 shares in the second quarter of fiscal 2024 at a cost of about $10 million.

The 'value' retailer sells sporting goods, games, toys, tech, books, electronic accessories, and arts and crafts that are priced between $1 and $5. It has more than 1,700 stores in 44 states.

Some Stocktwits users were concerned about the potential impact of trade tariffs. While another cautioned against the lack of volume.

 

Five Below stock is down 52% year-to-date. 

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