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    Do Five Below's New $5 Assortments And Store Leases Reframe Its Growth Story (FIVE)?

    Simply Wall St·01/08/2026 05:32:44
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    • In recent months, Five Below expanded its value-focused assortment with six new products priced at US$5 or less and secured a lease for a future store at North Griffin Square in Griffin, Georgia, adding to its more than 1,800 locations nationwide.
    • These moves, alongside management’s caution around discretionary spending and softer comparable sales in the latest quarter, highlight how Five Below’s value appeal coexists with growing questions about the pace and resilience of its growth plan.
    • Against this backdrop of new low-priced assortments and continued store expansion, we’ll examine how the latest earnings volatility reshapes Five Below’s investment narrative.

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    Five Below Investment Narrative Recap

    To own Five Below, you need to believe its low-price, trend-focused model can keep drawing traffic even as tariffs, labor costs, and expansion risks threaten margins. The latest product launches under US$5 and a new Georgia lease support the near term store growth story, while recent earnings volatility keeps the biggest near term risk squarely on whether comparable sales can stay resilient. Overall, these news items do not materially change the core risk reward debate.

    The most relevant update here is the continued store rollout, including the planned North Griffin Square location in Georgia. For investors, this sits right at the heart of the current catalyst and risk mix: disciplined expansion can support higher sales and earnings over time, but a build out that runs ahead of demand could pressure comps and store level profitability.

    Yet while store growth looks appealing, investors should be aware of how rising labor and tariff costs could...

    Read the full narrative on Five Below (it's free!)

    Five Below's narrative projects $5.7 billion revenue and $352.1 million earnings by 2028. This requires 10.6% yearly revenue growth and about a $79 million earnings increase from $273.1 million today.

    Uncover how Five Below's forecasts yield a $186.24 fair value, a 7% downside to its current price.

    Exploring Other Perspectives

    FIVE 1-Year Stock Price Chart
    FIVE 1-Year Stock Price Chart

    Three fair value estimates from the Simply Wall St Community span roughly US$78.71 to US$186.24, showing how far apart individual views on Five Below can be. When you set these opinions against the current focus on comparable sales resilience and expansion risk, it becomes clear why checking several viewpoints before deciding how Five Below fits your portfolio can be helpful.

    Explore 3 other fair value estimates on Five Below - why the stock might be worth less than half the current price!

    Build Your Own Five Below Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.