Five Below, Inc. (FIVE)’s CEO Did A Quick Turnaround, Says Jim Cramer

We recently published 10 Stocks Jim Cramer Discussed As He Asserted He Could Beat The Government’s Numbers. Five Below, Inc. (NASDAQ:FIVE) is one of the stocks Jim Cramer recently discussed.

Five Below, Inc. (NASDAQ:FIVE) is a diversified American retailer that sells a variety of products such as apparel, toys, home products, and fitness equipment. Its shares have gained 39.6% year-to-date and managed to weather the storm that has hit the broader retail sector on worries about consumer spending and tariff impact. Cramer’s previous comments about Five Below, Inc. (NASDAQ:FIVE) have remarked that the firm brought in a lot of inventory to stave off tariff impacts. This time, he commented on the retailer’s earnings and an analyst upgrade:

“By the way, Five Below had a great number.

“[On Loop Capital upgrading the shares] That was a new CEO came in and turned that thing around so quickly. Which by the way, one of the things they solved was the theft problem which was terrible. And a lot of people were short Five Below because they do have a lot China exposure. A lot of that, David, that’s like, you know, it’s Chinese.”

Cramer discussed Five Below, Inc. (NASDAQ:FIVE) in detail ahead of its earnings. Here is what he said:

“Same as Wednesday, when you hear from Dollar Tree and Five Below. Hey man, these are so-called last resort retailers where you go when you have any trouble stretching your budget. They’re masters at finding low-price merchandise, but with the tariffs on China, previously low-cost merchandise, they gotta scramble to find the equivalent from countries that at this point might have more leverage than you’d expect. I mean, they never expected all these orders.

Copyright: verkoka / 123RF Stock Photo

I think all three chains will have good quarters because they were able to bring in a lot of merchandise before the tariffs hit. It’s the guidance I’m worried about because the tariff regime means that either they need to raise prices substantially or accept a much lower level of profitability. Their stocks could be terrible. I wish they could be as adept as Costco, which reported this outstanding number.”

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Disclosure: None. This article is originally published at Insider Monkey.