Discount retailer Five Below jumps on solid sales forecast despite tariff risks

Shares of discount chain Five Below Inc FIVE.O jump 12% to $84.59 premarket

Retailer expects fiscal 2025 net sales between $4.21 bln and $4.33 bln, largely above analysts' estimate of $4.26 billion - data compiled by LSEG

Projects midpoint of adj. operating margin to decline about 180 basis points year-over-year due to tariffs

Co says forecast assumes roughly 100-basis-point impact to gross margin, particularly in H2 2025 from currently known tariffs, which includes 20% levy on China but does not include potential reciprocal tariffs

Posts better-than-expected Q4 results, owing to stable demand from lower-income groups amid economic uncertainty

Encouraged by progress in Q4, but we still have limited visibility, given several moving parts ... as well as full impact of tariffs that could flow into 2026, Telsey Advisory Group analyst Joseph Feldman says

So far, stock down 28% as of last close