Seeking Alpha

Five Below on watch for tariff-related guidance adjustment

|About: Five Below, Inc. (FIVE)|By:, SA News Editor

Credit Suisse previews Five Below (NASDAQ:FIVE) before the retailer's earnings release scheduled for tomorrow. "

"FIVE management has not yet embedded a 25% rate on Chinese imports covered under the Section 301 Tariffs (Lists 1-3) within 2019 guidance, but has previously indicated a willingness to raise price, even above the $5 mark," notes the CS team.

"We anticipate that beyond comp trajectory, any tariff impact to guidance and/or business strategy will be the key driver of the stock on Wednesday."

The firm thinks that 30% to 40% of in-store SKUs are priced at $4 and $5.

Credit Suisse heads into Five Below earnings day with a Neutral rating on the retailer and price target of $120.

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