Five Below, Inc. (FIVE) is an American publicly held chain of specialty discount stores targeted at teens and pre-teens. The company was founded in 2002 by David Schlessinger, the founder of Zany Brainy, and Tom Vellios who was the former CEO of Zany Brainy. The name "Five Below" stems from the concept that all merchandise in the store is priced at $5 or less.
The company is headquartered in Philadelphia, Pennsylvania, and primarily operates across the Eastern, Southern, and Midwest regions of the United States. Five Below stores are typically located in strip malls as opposed to standalone locations. The business model is focused on offering a wide variety of merchandise including toys, beauty products, candy, snacks, home decor, school supplies, and electronics, all at extremely low prices.
Since its inception, Five Below has gradually grown its footprint across the country. As of 2021, the store boasts a network of over 1000 locations across 38 states. One of the major factors driving this rapid expansion has been the company's appeal to bargain-hunting teens and pre-teens, as they provide trendy, high-quality products at affordable prices. Yet, it is not just the young audience that finds Five Below appealing. The company’s selection of low-cost goods also attracts parents, young adults, and anyone searching for a good deal.
Over the years, Five Below has prioritized an omnichannel retail approach, updating its online presence and delivery capabilities while continuously expanding its brick-and-mortar stores. Their fun and dynamic store environment, combined with an ever-changing assortment of products, has made each Five Below store a favourite destination for customers.
Financially, Five Below has experienced steady growth and profitability. Despite temporary store closings during the COVID-19 pandemic, the company managed to maintain financial stability, bolstered by a surge in online sales.
In conclusion, Five Below, Inc. (FIVE) is a resilient company in the retail discount industry, known for its unique business strategy of selling trendy, high-quality products at very affordable price points. Its commitment to variety, quality, value, and fun has set it apart as a key player in targeted teen and pre-teen demographics and beyond.
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Five Below's stock has surged by 68.9% over the past year, leading to questions about whether its current valuation is justified by its cash flow generation. A Discounted Cash Flow (DCF) model suggests the stock is substantially overvalued compared to its projected free cash flow. While analyst narratives offer both bullish and bearish perspectives, the current stock price appears to reflect a richer outlook than the underlying cash flow model supports.
Sumitomo Mitsui Trust Group Inc. significantly reduced its stake in Five Below, Inc. by 84.7% in the third quarter, selling 6,450 shares. This comes as Five Below reported strong quarterly earnings of $1.68 per share and a 22.9% year-over-year revenue increase to $1.26 billion. Analysts maintain a "Moderate Buy" rating for the stock with an average price target of $300.45.
Calamos Advisors LLC significantly increased its stake in Five Below, Inc. (NASDAQ:FIVE) by 88.3% during the third quarter, now owning 8,929 shares valued at $1,961,000. Other institutional investors also adjusted their positions, with several acquiring new stakes or boosting existing holdings. The article also details recent insider stock sales, Five Below's financial performance, and current analyst ratings, noting an average "Moderate Buy" rating with a target price of $300.45.
Fulcrum Asset Management LLP acquired a new stake of 40,428 shares in Five Below, Inc. (NASDAQ:FIVE) during the third quarter, valued at approximately $8.98 million. The specialty retailer has a consensus "Moderate Buy" rating from analysts with an average target price of $300.45. Five Below recently beat quarterly earnings expectations, reporting EPS of $1.68 and revenue of $1.26 billion, a 22.9% increase year-over-year.
Five Below is bringing back early-2000s-style Black Friday rushes with exclusive toy drops, including NeeDoh-filled Candy Canes and festive squishy dumplings. The highly sought-after NeeDohs, which have been difficult to acquire this season, will be available as "Groovy Globs" in candy cane packaging. Additionally, Five Below is offering a special Black Friday doorbuster Mystery Dumpling, free with a $35 purchase, and a larger Jumbo Mystery Dumpling, both exclusive to the store and available only in person.
Summit Creek Advisors LLC significantly reduced its stake in Five Below, Inc. by 25% in the third quarter of 2026, selling 7,882 shares and retaining 23,648 shares valued at approximately $5.2 million. This move comes as Five Below reported strong quarterly earnings, beating analyst estimates for both EPS and revenue, and with analysts holding a "Moderate Buy" consensus rating on the stock. Insider selling also occurred, with the CMO and CAO selling shares valued at over $200,000 and $1.3 million respectively.
Wall Street Zen has upgraded Five Below (NASDAQ:FIVE) from a "hold" to a "buy" rating, aligning with a broader "Moderate Buy" consensus among analysts. The company recently surpassed quarterly earnings and revenue expectations, reporting EPS of $1.68 and revenue of $1.26 billion. Despite insider stock sales, the stock has shown positive price performance, and institutional investors have increased their holdings.
Discount retailer Five Below is set to open a new store in the former Ivy & Sage location at 4946 S. Power Road in Mesa, joining the Gilbert Gateway Towne Center. This upcoming store will be the third Five Below in Mesa, offering a variety of merchandise priced mostly between $1 and $5. An opening date has not yet been announced for the new location.