Why Five Below Slumped 19.5% This Week
Shares of Five Below (NASDAQ: FIVE) tumbled 19.5% this week, according to S&P Global Market Intelligence. The specialty discount retailer that sells items below $5 got hit after Target and Walmart reported their quarterly earnings. It also doesn't help that the broad market indices were down this week as well.
Five Below did not release any earnings or business updates this week. However, both Target and Walmart, large companies in the same industry, reported poor quarterly results. Target's operating margin is under pressure from both inflationary pressures in freight costs and inventory issues. Apparently, consumers are moving away from home goods/apparel and buying items focused on the beauty and travel industries. These developments caught Target's management off guard but make sense given the changing dynamics of the U.S. economy coming out of the COVID-19 pandemic. Target stock dropped more than 20% this week because of these developments.
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Source Fool.com
