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Five Below Pops on Strong Earnings, But Rally May Stall 
Off-price retail stocks have had a good week, and Five Below Inc. (NASDAQ: FIVE) was no exception. After the market closed on June 4, the company reported strong earnings and raised its full-year guidance. FIVE stock is up more than 50% after bottoming out after the Liberation Day tariffs announced in April. However, even after the strong results, investors may not want to chase FIVE stock at these levels. The headline results for Five Below were bullish. Net sales came in at $970.5 million that was a 19.5% year-over-year (YOY) increase from the $811.9 million in the same quarter last year. The company also reported that comparable sales increased by 7.1%. On the bottom line, earnings per share (EPS) of 86 cents beat expectations of 83 cents per share and were 43% higher YOY. The company cited its “trend-right product” strategy and store expansion as the reasons for its strong performance. However, the story for all retailers in 2025 is guidance, which was also bullish. The company raised its full-year revenue outlook to a range between $4.33 billion and $4.42 billion, which puts the low end to the high end of its previous guidance. Five Below also raised the low end of its full-year EPS outlook to $4.25 from $4.10. Both numbers assume the company will open an additional 30 new stores to the 50 it opened in the last quarter. That is expected to drive an estimated 7% to 9% increase in comparable store sales. With the next presidential cycle heating up and Trump leading the charge, major market shifts are already taking shape.
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