Five Below Delivers The Q1 Goods, Stock Gets Clobbered

Five Below (NASDAQ:FIVE) shares are getting hit hard Thursday, extending Wednesday’s post-earnings slide as investors rotate out despite one of the discount retailer’s strongest quarters on record.

• FIVE stock is slipping. Watch the price action here. 

FIVE was trading at $194.08 Thursday afternoon, down 12.93%, according to data from Benzinga Pro.  

Shares opened at $197.47 and touched an intraday low of $191.17, while volume of 2.8 million shares reflects heavy selling pressure. The two-day combined loss now totals roughly 19%. 

The selloff comes despite what Loop Capital’s Anthony Chukumba pegged as a beat and raise quarter that “blew the proverbial doors off.” 

Five Below posted Q1 revenue of $1.29 billion, well ahead of the $1.22 billion consensus, while adjusted EPS of $2.22 crushed the $1.74 estimate. 

Comparable-store sales surged 22.7%, driven by a 19% jump in transactions and a 4% increase in average ticket.

“Our continued focus on compelling newness at amazing value and great store execution is at the heart of our operating flywheel,” said CEO Winnie Park. 

Buy the Rumor, Sell the News

Chukumba reiterated his Buy rating and $250 price target in a note published Wednesday, calling the aftermarket drop “a classic case of ‘buy on the rumor, sell on the news'” and flagging it as an attractive buying opportunity. 

The price target is based on roughly 27.9 times Chukumba’s revised fiscal 2026 EPS estimate of $8.97 — a premium multiple he argues is justified by Five Below’s “stellar recent performance and near-term earnings growth prospects.”

At current levels around $195, FIVE trades at approximately 21x that same estimate — in line with comparable peers, according to Loop Capital.

FIVE Stock Price Activity: Five Below shares were down 12.42% at $195.20 at the time of publication Thursday, according to Benzinga Pro.

Over the past month, FIVE has declined about 15.9% versus a 4.8% rise in the S&P 500 and is up roughly 3% year-to-date compared to the index’s 10.3% gain.

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