Dec. 26, 2025 2:08 PM ETFive Below, Inc. (FIVE) StockEric Novinson208 FollowersCommentsFive Below delivered strong Q3 results, with revenue up 23.1% and comps up 14.3%, outperforming guidance and raising full-year outlook.FIVE’s merchandising and pricing strategies, including higher price points and a treasure-hunt format, are driving both transaction growth and higher average tickets.The company is stockpiling inventory, presenting both upside from higher-margin sales and downside risk of potential write-offs if demand falters.I downgrade FIVE to Hold; recent outperformance and positive catalysts appear fully priced in, with a one-year target price of $196.patty_c/iStock Unreleased via Getty ImagesThe last time I wrote about Five Below (FIVE), I explained why its CEO Winnie Park was doing a great job with her merchandising strategy and why I expected the company toThis article was written byEric Novinson208 FollowersI am a freelance business writer. I formerly wrote articles for the Motley Fool Blogging Network, where I won several editor's choice awards. After that, I wrote articles for the main Motley Fool site. I typically focus on restaurants, retailers, and food manufacturers, considering both growth opportunities and valuation metrics. I usually look for long term investment opportunities and plan to hold stocks for several years.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments