FIVE - Five Below's Future Bright Despite Shrink Headwinds Analysts Say | Benzinga
Analysts have lowered the price target of specialty discount store chain Five Below Inc (NASDAQ:FIVE) after the company reported its fourth-quarter FY23 earnings.
Mizuho Securities: Analyst David Bellinger reiterated a Buy rating on the shares of Five Below and lowered the price target from $225 to $215.
Despite a stronger comp sales gain of +3.1% in the period, weaker margins led to earnings per share of $3.65 or at the lower end of guidance for $3.64 – $3.80.
FIVE continues to grapple with elevated levels of product theft and has not seen a material improvement since implementing new initiatives in August/September, noted the analyst.
The midpoint of FY24E guidance for $5.71-$6.22 sits about (8%) below a consensus of $6.46 and the analyst sees operating margins tracking flat to slightly up at 10.9% for the year, with improvements in the second and third quarters.
Any ...