Five Below's Q3 2022: Taking Advantage Of A Weaker Customer

Dec. 08, 2022 9:01 AM ETFive Below, Inc. (FIVE)6 Comments

Summary

  • Five Below reported very solid results last week, aided by the customer unfreeze that management expected.
  • We explain the inventory increase.
  • The company fell short of store openings again, but all eyes are on what could be a record 2023 in this regard.
  • Profitability was the “lowlight” again as the company deleverages from a stronger-than-usual 2021.
  • Guidance was strong, guiding for margin expansion and accelerating growth as tough comps become a thing of the past.
  • 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

ablokhin

Last quarter, we said that Five Below becomes a needs-based retailer during the holiday season, and we are beginning to see that play out with improved transactions.

Joel Anderson, Five Below’s CEO, during the Q3 2022 earnings Call

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