Five Below's Q2 2022: Doubling Down On The Downturn

Sep. 05, 2022 10:00 AM ETFive Below, Inc. (FIVE)10 Comments

Summary

  • Five Below reported soft earnings in Q2, providing lower-than-expected results and guidance.
  • The company faced more headwinds than expected which led to poor performance.
  • Management expects to benefit materially from the downturn thanks to its strong financial position and opportunistic counter-cyclical investments.
  • The highlight of the release was expected store growth, which is a leading indicator of sales.
  • The Triple-Double long-term vision remains intact, and that’s what we, as long-term shareholders, care about.
  • This idea was discussed in more depth with members of my private investing community, Best Anchor Stocks. Learn More »

Five Below store in Fairfax county, Virginia shop exterior entrance with sign, logo, doors discount dollar chain for teens, pre-teens

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Introduction

Five Below (NASDAQ:FIVE) reported its Q2 earnings this week. This article aims to answer two questions: "Were the Q2 earnings good?" and "Is the long-term thesis intact?"

Simply put, the answer to the first question is a resounding no. This

Five Below's Q2 Results

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Five Below's revenue vs guidance

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Five Below's EPS vs estimates

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Five Below's comparable sales

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Five Below comparable sales evolution

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Five Below number of stores

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Five Below's profitability

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Five Below Margins against 2019

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Five Below's operating cash flow

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Five Below's inventories

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Five Below Cash flows

Five Below 8K

Five Below's guidance

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This article was written by

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Disclosure: I/we have a beneficial long position in the shares of FIVE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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