A renewed focus on teen shoppers has helped Philadelphia-based Five Below offset tariff pressures, positioning the retailer as one of retail’s standout comeback stories, writes Rachel Phua for Bloomberg.
Following a five-year stock low that was triggered by President Donald Trump’s April 2024 tariff announcement, the retailer reworked its strategy around licensed products tied to major hits, such as KPop Demon Hunters.
They also focused on viral trends, introducing Dubai-style chocolate bars and Lababies, its in-house version of the mega-popular Labubus. This move led to a powerful rally, turning the stock into one of the strongest performers in the S&P MidCap Index and more than tripling its value.
A strong holiday season capped the year, resulting in a near doubling of the company’s growth forecast. The performance prompted analysts at JPMorgan, Morgan Stanley, and several other firms to lift their price targets. Analysts also pointed to confidence in Chief Executive Officer Winnie Park, who stepped into the role in late 2024.
“She came in as an unknown quantity,” said David Bellinger, an analyst at Mizuho Securities USA. She worked with co-founder Tom Vellios, “and they really got back to the heart of merchandising.”
Read more about the demographic helping change Five Below’s fortunes in Bloomberg.
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