FIVE - Retail warning: Five Below is said to be dialing up more promotions

Gordon Haskett expressed some skepticism on Five Below (NASDAQ:FIVE) hitting its FY22 outlook after taking in the recent round email promotions on summer seasonal items. Analyst Chuck Grom said the promotions arrived early in the season and were deeper than anticipated. "This likely raises questions about consumer spending on discretionary items and the elevated inventory levels most retailers experienced exiting 1Q," he warned. The major Gordon Haskett takeaway is that this years' promotional stance from FIVE reflects consumers are tightening their purse strings on discretionary items as they face growing widespread inflation. The promotions are expected to increase if consumer spending is soft. Despite the warnings, the firm has an Accumulate rating on FIVE and price target of $140. The Five Below (FIVE) promotional push could be of interest to other retailers, including chains like Big Lots (BIG), Dollar Tree (DLTR), Dollar General (DG), and Target (TGT). Five Below (FIVE)

For further details see:

Retail warning: Five Below is said to be dialing up more promotions