William Blair analyst Phillip Blee has maintained their neutral stance on FIVE stock, giving a Hold rating today.
Phillip Blee has given his Hold rating due to a combination of factors influencing Five Below’s financial outlook. The company reported fourth-quarter results that exceeded expectations, with comparable store sales reaching the higher end of projections and earnings per share slightly above initial guidance. However, the full-year outlook revealed some challenges, particularly with the EBIT margin and EPS projections falling short of consensus due to tariff impacts.
Despite these challenges, the consumer outlook remains somewhat positive, with first-quarter comparable sales aligning with guidance and potential benefits expected in the second quarter due to seasonal shifts. The company’s customer base, primarily consisting of lower-income households, may show resilience amid economic uncertainties. However, the significant reliance on Chinese imports, which constitute a large portion of the cost of goods sold, poses a risk due to tariffs, leading to a cautious stance reflected in the Hold rating.
In another report released today, Barclays also maintained a Hold rating on the stock with a $93.00 price target.
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