Five Below (FIVE) is Showing a Record Number of Five Beyond SKUs - Jefferies

Jefferies analyst Randal Konik reiterated a Buy rating and $300.00 price target on Five Below (NASDAQ: FIVE) after updating the Five Beyond SKU Tracker and observing a record-high 179 SKUs (as of Oct. 14), ~4x March '21 levels, in the Five Beyond section of the Five Below website.

The analyst stated "We believe FIVE's continued rollout of Five Beyond is timely as the holidays approach and inflationary pressures persist." "While rising freight costs have been an investor concern, we believe FIVE is relatively better insulated from this headwind than certain other Value Retailers, as FIVE is quickly scaling, its shipping rates are contracted beyond 3Q and 4Q at pre-
negotiated rates, and the projected go-forward impact from freight is likely only tens of basis points (in terms of the net impact, according to mgmt). Also, FIVE recently announced the opening of its Arizona Ship Center, which began shipping to stores at the beginning of 3Q, and FIVE is planning to open an Indiana Ship Center in the summer of 22, likely driving further efficiencies ahead."

For an analyst ratings summary and ratings history on Five Below click here. For more ratings news on Five Below click here.

Shares of Five Below closed at $190.06 yesterday.

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