Can Five Below (FIVE) Rise Above Expectations?
- Leveraging its small stores (typically located in shopping centers) to rapidly grow its retail footprint — FIVE management predicts 180 new store openings in FY21.
- Expanding its digital presence through strategic partnerships (Instacart) and rolling out curbside pickup.
- Incorporating higher-priced items by adding “Five Beyond” sections to more locations going forward.
Five Below has surpassed top and bottom-line expectations in the past 3 quarters. Wall St. expectations for the upcoming report have been raised accordingly.
We’ve seen rivals Dollar Tree (DLTR) & Dollar General (DG) move lower on “good” numbers…FIVE shares have traded lower in sympathy.