Five Below's Trading Volume Plummets 75.2% to $200 Million, Slipping to 423rd in Daily Rankings Despite Strong Q1 Earnings

On June 6, 2025, Five Below (FIVE) experienced a significant decline in trading volume, with a total turnover of $200 million, marking a 75.2% decrease from the previous day. This drop placed Five Below at the 423rd position in the daily stock market rankings. The stock price of Five Below decreased by 0.52%.

Five Below's first-quarter earnings report exceeded expectations, driving the stock price higher this week. The company reported a 19.5% year-over-year revenue increase to $970.5 million, surpassing the consensus estimate of $968 million. Non-GAAP earnings per share (EPS) rose to $0.86, a 43.3% increase from the prior-year period and 3.3% above estimates. Comparable sales growth surged 7.1%, driven by a 6.2% rise in transactions and a 0.9% lift in average ticket prices.

Five Below's new store performance further reinforced the company's scalability. The company added 55 net new stores in Q1, ending the quarter with 1,826 locations—a 13.8% year-over-year increase. Management highlighted two standout openings in Victorville, California, and Joplin, Missouri, which ranked among the top 25 grand openings in the company's history. With a plan to open 150 stores in 2025, Five Below is aggressively expanding into underpenetrated markets like the Pacific Northwest.

Five Below's success hinges on a repeatable, scalable model that combines merchandising expertise, operational discipline, and marketing savvy. Product assortment, operational efficiency, and digital engagement are key drivers of the company's growth. The company's ability to refresh its inventory every 30–45 days keeps shelves dynamic and drives repeat visits. Streamlined store processes and better inventory management improved in-stock rates, reducing lost sales. Social media and creator partnerships amplified brand awareness, particularly among Gen Z and millennial shoppers.

Loop Capital analysts raised the price target for Five Below stock to $130 from a previous target of $90, citing the company's strong Q1 performance and raised guidance. The analysts highlighted Five Below's scalable model, strong execution, and a valuation that rewards growth. The company's forward P/E ratio of 25.9x is slightly above its five-year average of 23.5x, but remains attractive relative to peers. Dollar Tree trades at 20.1x earnings, and Walmart, a broader retailer, has a P/E of 18.6x. Five Below's premium valuation is justified by its superior growth trajectory, with an average of 18% annual revenue growth over five years, versus Dollar Tree's 14% and Walmart's 4%.