Jim Cramer on Five Below: “We’re Used to Having Them Raise Guidance”

Five Below, Inc. (NASDAQ:FIVE) was among the stocks Jim Cramer highlighted on Mad Money as he noted that the market has an appetite for stocks. Cramer highlighted the management commentary during the company’s conference call, as he said:

Consider former market darling, Five Below, which reported just last night. Now, here’s a store with a little higher price point, but it’s been viewed as the real bargain for discretionary toys. But as CFO Daniel Sullivan pointed out in the conference call last night, “We remain cautious with respect to the macro environment, consumer sentiment, and buying behaviors. As such, we have left our half 2 comparable sales assumptions unchanged from our previous guidance.” And you wonder why the stock fell almost 14% today. We’re used to having them raise guidance…

After years of being able to offer $1 items, the combination of inflation and tariffs, particularly on China, has totally busted the buck. The dollar stores no longer feel like bargains… Five Below… It’s lost its luster.

Photo by AlphaTradeZone

Five Below, Inc. (NASDAQ:FIVE) sells a wide range of low-priced essentials, decor, tech accessories, toys, crafts, snacks, and seasonal items.

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