Five Below Gets Right Back on Track
Investors have been cautious about Five Below (NASDAQ: FIVE) this year, given its limited merchandise offering at a time when many shoppers are avoiding trips to malls and specialty retailers. Peers have been reporting sluggish demand and pricing pressures, too.
But the youth-focused discount retailer revealed this week that it overcame those challenges to post a quick return to sales gains for the fiscal 2020 second quarter. Five Below's results also indicate that it has an attractive runway for growth ahead as it works to establish itself in new markets around the country.
Investors were expecting a sharp improvement over the prior-quarter's 50% sales decline as stores reopened following COVID-19 shutdowns. But Five Below outpaced those optimistic forecasts as revenue rose 2%.
Source Fool.com
