Five Below's Pressure from Tariff Hikes Drives Estimate Lower -- Market Talk

Dow Jones

Mar 21, 2025

1330 ET - Five Below's better-than-expected comparable sales in the latest quarter are encouraging, but its exposure to China will bring more challenges to the discount retailer, BofA Securities analysts say in a research note. The company sources 60% of its costs of goods sold from China either directly or through domestic vendors. Even though management provided guidance for 100 basis points of gross merchandise value in F25 from tariffs, the analysts expect F26 to face an incremental 100 basis points of pressure. BofA Securities lowers its FY25 and FY26 EPS estimates by 6.7% and 12.5%, respectively, on tariff pressure, and cuts its target price to $75 a share from $88 a share previously. Shares rise 6% to $80.17. (sabela.ojea@wsj.com; @sabelaojeaguix)

(END) Dow Jones Newswires

March 20, 2025 13:30 ET (17:30 GMT)

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The company sources 60% of its costs of goods sold from China either directly or through domestic vendors. Even though management provided guidance for 100 basis points of gross merchandise value in F25 from tariffs, the analysts expect F26 to face an incremental 100 basis points of pressure. BofA Securities lowers its FY25 and FY26 EPS estimates by 6.7% and 12.5%, respectively, on tariff pressure, and cuts its target price to $75 a share from $88 a share previously. Shares rise 6% to $80.17. (sabela.ojea@wsj.com; @sabelaojeaguix) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  March 20, 2025 13:30 ET (17:30 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Five Below's Pressure from Tariff Hikes Drives Estimate Lower -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nFive Below's Pressure from Tariff Hikes Drives Estimate Lower -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2025-03-21 01:30</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     1330 ET - <a href=\"https://laohu8.com/S/FIVE\">Five Below</a>'s better-than-expected comparable sales in the latest quarter are encouraging, but its exposure to China will bring more challenges to the discount retailer, BofA Securities analysts say in a research note. The company sources 60% of its costs of goods sold from China either directly or through domestic vendors. Even though management provided guidance for 100 basis points of gross merchandise value in F25 from tariffs, the analysts expect F26 to face an incremental 100 basis points of pressure. BofA Securities lowers its FY25 and FY26 EPS estimates by 6.7% and 12.5%, respectively, on tariff pressure, and cuts its target price to $75 a share from $88 a share previously. Shares rise 6% to $80.17. (sabela.ojea@wsj.com; @sabelaojeaguix) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  March 20, 2025 13:30 ET (17:30 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"FIVE","symbol_name":"Five Below","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2521627144","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2521627144","pubTimestamp":1742491800,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"1330 ET - Five Below's better-than-expected comparable sales in the latest quarter are encouraging, but its exposure to China will bring more challenges to the discount retailer, BofA Securities analysts say in a research note. The company sources 60% of its costs of goods sold from China either directly or through domestic vendors. Even though management provided guidance for 100 basis points of gross merchandise value in F25 from tariffs, the analysts expect F26 to face an incremental 100 basis points of pressure. BofA Securities lowers its FY25 and FY26 EPS estimates by 6.7% and 12.5%, respectively, on tariff pressure, and cuts its target price to $75 a share from $88 a share previously. Shares rise 6% to $80.17. ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"FIVE":"Five Below","BK4200":"专卖店"},"translate_title":"关税上调带来的五点压力压低了预估——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"FIVE":1},"content_text":"1330 ET - Five Below's better-than-expected comparable sales in the latest quarter are encouraging, but its exposure to China will bring more challenges to the discount retailer, BofA Securities analysts say in a research note. The company sources 60% of its costs of goods sold from China either directly or through domestic vendors. Even though management provided guidance for 100 basis points of gross merchandise value in F25 from tariffs, the analysts expect F26 to face an incremental 100 basis points of pressure. BofA Securities lowers its FY25 and FY26 EPS estimates by 6.7% and 12.5%, respectively, on tariff pressure, and cuts its target price to $75 a share from $88 a share previously. Shares rise 6% to $80.17. (sabela.ojea@wsj.com; @sabelaojeaguix) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  March 20, 2025 13:30 ET (17:30 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"policyRegulatory","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}