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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