FIVE: Decent Business At A Horrible Price
FIVE: Decent Business At A Horrible Price
Mon, Jun. 13, 11:14 AM
- The strong performance of the dollar stores sector amid a choppy retail environment is due in part to the format's popularity across different household income levels, according to data from NPD Group.
- 19% of spending at dollar stores for a 12-month period ending in April came from households with more than $100K in income. 33% of the sales brought in over the same period were from households with over $75K in income. The same effect is being felt at some specialty retailers and other discounters which are drawing more traffic from higher-income consumers than some anticipated.
- Dollar Tree (DLTR -0.2%), Dollar General (DG -0.4%), Fred's (FRED -0.3%), Big Lots (BIG -2.5%), Five Below (FIVE -0.5%), and Party City (PRTY -0.9%) have all outperformed the broad-based S&P 500 Retail ETF (NYSEARCA:XRT) over the last 90 days.
Thu, Jun. 2, 4:02 PM
Wed, Jun. 1, 5:35 PM
Tue, May 31, 11:45 AM
- Five Below (FIVE +0.6%) will launch its first store in Oklahoma with an opening in Oklahoma City later this week. Oklahoma is the 29th state where Five Below has a physical presence.
- A second store in Oklahoma is planned for later in the month in Edmond.
- Shares of Five Below rose 9% last week after several discounters reported solid earnings.
Thu, May 26, 2:30 PM
- Discounters are rallying in full force after Dollar General (DG +4.6%) and Dollar Tree (DLTR +12.5%) both posted Q1 profit ahead of expectations.
- Steady consumer demand, tight expense control, and an easing of promotional pressure underpinned both reports.
- Retail Dive may have arrived at the heart of the matter, by noting that dollar stores attract different shoppers than the retailers which have been ravaged by Amazon's growth.
- "We are part of what I consider, in this economic environment, the most attractive sector in retail," said Dollar Tree CEO Bob Sasser.
- Investors seem to agree. Ollie's Bargain Outlet Holdings (OLLI +7.6%), Burlington Stores (BURL +7.8%), Big Lots (BIG +2.7%), Five Below (FIVE +2.9%), Ross Stores (ROST +0.9%), TJX Companies (TJX +1%), Tuesday Morning (TUES +1.9%), and Fred's (FRED +6.2%) are all pushing higher.
Tue, May 24, 9:38 AM
- Worried about Fed rate hikes pushing the greenback up higher? Focus on growing companies deriving at least 80% of sales from the U.S., says Jefferies' Steven DeSanctis.
- He notes the dollar peaked on Jan. 20, and sectors with big overseas exposure have outperformed since. However, with higher interest rates looking like they might send the dollar back into an uptrend, it's time to refocus on companies less reliant on exports.
- DeSanctis and team identified 27 small- and mid-cap companies that were: In the Russell 2500 and Buy-rated by Jefferies, have less than 20% of sales outside of U.S., "sit in the highest two quintiles" based on ROE, and have market values north of $2B.
- Of that group, they picked ten showing the highest growth of sales per share (though a tie brought the total to 11): Paycom Software (NYSE:PAYC), Lithia Motors (NYSE:LAD), Centene Corp. (NYSE:CNC), Molina Healthcare (NYSE:MOH), Five Below (NASDAQ:FIVE), Mednax (NYSE:MD), Western Alliance Bancorp (NYSE:WAL), Signature Bank (NASDAQ:SBNY), KAR Auction (NYSE:KAR), Science Applications (NYSE:SAIC), and Urban Outfitters (NASDAQ:URBN).
Wed, May 11, 9:54 AM
- The hits keep coming for the specialty retail sector with L Brands, Gap, and Macy's all reporting troubling sales trends this week which point to a detached U.S. consumer.
- Investors aren't ignoring the broad theme. Decliners today include FTD Companies (FTD -1.6%), Finish Line (FINL -3.5%), Five Below (FIVE -3.3%), Michaels Companies (MIK -1.9%), Zumiez (ZUMZ -4.4%), Urban Outfitters (URBN -5.2%), Ascena Retail Group (ASNA -7.3%), The Children's Place (PLCE -3.8%), and DSW (DSW -3.3%). Most of those losses follow on declines from earlier in the week.
- Related: The new millennials ETF takes a pass on apparel store stocks (May 10)
Wed, Mar. 23, 1:03 PM
- Sharply lower overnight following an earnings beat, but soft guidance, Five Below (FIVE +7%) has turned things around in today's session. Among the reasons:
- Management reiterated intentions to get to 2K stores (vs. just over 400 currently). The company this year plans 85 openings (vs. 71 in 2015), including initial entries into South Florida and South Texas. California is eyed for 2017. New stores continue to perform well, say execs.
- The company nailed the holiday season, with comp sales up 4.1% during the key weeks.
- Consumers shopped the entire store, marketing is working, and Q1 is off to a promising start, with comp sales up 4% vs. 3.6% in FQ4.
Tue, Mar. 22, 5:41 PM
Tue, Mar. 22, 4:37 PM| Tue, Mar. 22, 4:37 PM | 2 Comments
Tue, Mar. 22, 4:03 PM
Mon, Mar. 21, 5:35 PM
Fri, Mar. 11, 10:54 AM
- The solid week for specialty retail continues after a majority of earnings report come in ahead of expectations.
- Ulta Salon (ULTA +16%) and Party City (PRTY +7.1%) were the headliners, but a host of companies realized stronger pricing than anticipated during the quarter to help offset weak traffic trends.
- Retail sector movers include FTD Companies (FTD +6.1%), Pier 1 Imports (PIR +2.3%), Sally Beauty Holdings (SBH +2.4%), Five Below (FIVE +2%), Stein Mart (SMRT +5.7%), Buckle (BKE +2.5%), Urban Outfitters (URBN +2.2%), and Tilly's (TLYS +2.9%) .
Thu, Mar. 10, 10:27 AM
- Party City (PRTY +19.5%) and Dollar General (DG +7.2%) are both flying after Q4 earnings shine.
- Both retailers improved profit and operating margins off sales mix and a dialing down of promotions.
- The strong reads from the retailers is giving a lift to Fred's (FRED +2.5%), Dollar Tree (DLTR +3.5%), Big Lots (BIG +1.6%), and Five Below (FIVE +2.2%).
- Previously: Dollar General +3.8% post Q4 results (Mar. 10 2016)
- Previously: Party City beats by $0.01, misses on revenue (Mar. 10 2016)
Thu, Feb. 18, 10:46 AM
- A large number of retail chain stocks are taking their cues from Wal-Mart's sluggish read on U.S. sales growth. The Bentonville giant reps such a high percentage of total U.S. retail sales that its report and guidance are viewed as leading indicators.
- Dollar Tree (DLTR -2.6%), Dollar General (DG -2.3%), Big Lot (BIG -1.7%), Fred's (FRED -2.1%), Kroger (KR -3.6%), Party City (PRTY -1.7%), Five Below (FIVE -2.7%), The Michaels Company (MIK -2.5%), and Costco (COST -2.2%) are all lower.
- The SPDR S&P Retail ETF (NYSEARCA:XRT) is down 1.1%, compared to a minor gain by the Dow 30.
- Previously: Wal-Mart beats by $0.06, misses on revenue (Feb. 18 2016)
- Previously: Wal-Mart lower after showing soft U.S. comp (Feb. 18 2016)
Tue, Feb. 16, 11:02 AM
- Specialty retail stocks are breaking out of the pack to record strong gains.
- A number of economists have revised their forecast upward on the part of consumer spending tied to low-ticket household/clothing/recreational items.
- The Container Store (TCS +10.4%), Zagg (ZAGG +7.9%), Pier 1 Imports (PIR +4.2%), Chico's (FAS +3.4%), Five Below (FIVE +3%), and Destination XL Group (DXLG +5.5%) are notable gainers.
- The sporting goods sector is also showing strength - Hibbett Sports (HIBB +3.6%), Cabela's (CAB +3.7%), Dick's Sporting Goods (DKS +2.4%), and Big 5 Sporting Goods (BGFV +1.9%) are all ahead of broad market averages.
Five Below, Inc. engages in the shopping business. It offers an assortment of merchandise including sporting goods, games, fashion accessories and jewelry, to hobbies and collectibles, bath and body, candy and snacks, room décor and storage, stationery and school supplies, video game... More
Sector: Consumer Goods
Industry: Apparel Stores
Country: United States
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