Credit Suisse sticks with a Neutral rating on Five Below (FIVE +5.1%) due to tariff overhangs, but sees some potential offsets for the retailer in the back half of the year.
"While FIVE remains one of the most differentiated retail concepts with the fastest new store return model we have seen, we continue to see risk/reward as balanced at current levels, particularly given the prolonged uncertainty around tariffs," notes CS analysts Judah Frommer.
"Delivery on an improved comp cadence in the back half from better licensing opportunities (Frozen 2 products will hit the stores in early October) and continued evidence that higher price points come with low elasticity of demand would turn us more positive near-term," he adds.
The sell-side consensus on Five Below is still an Outperform rating.
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