Five Below's Q3, And Why It Is Still A Sell

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About: Five Below, Inc. (FIVE)
by: Josh Arnold
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Josh Arnold
Long/short equity
Summary

FIVE reported another quarter of very strong top line growth.

But the company's comparable sales are just okay, and margins never seem to move.

Given this, and the extreme valuation, I still think FIVE is a sell, but not a short.

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Off-price retailer Five Below (FIVE) has been uncharacteristically weak this year. The stock is roughly flat in 2019 while the broader market has been making new highs. I’ve been bullish on