2024-03-21 16:52:47 ET
Summary
- Five Below, Inc. Q4 results missed expectations, with net sales increasing by 19.1% but falling short by $30 million.
- Comparable sales increased by 3.1% and the company has expanded its store count by 15% compared to last year.
- The company cited theft as a headwind, leading to lower earnings and the need to raise prices to offset the losses.
- Plans to mitigate theft will "take time."
- Five Below, stock is richly valued for the low degree of earnings growth in 2024.
Shrink. It is a term being cited more and more by retail as a reason why they are raising prices, why they are seeing worse than expected results, and why forward guidance from so many are being impacted to account for this. Believe it or not, there is mass theft even in low dollar item stores like Five Below, Inc. ( FIVE ), where items mostly range from $1-$5, with some "more than $5" section, or so-called "five beyond," format stores as well....
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Five Below: Crushed By Theft In Q4, Guidance Shaky