Five Below's comps are decelerating, but they're still impressive, says Jim Cramer
Speakers
Jim Cramer
— Host, Mad Money
Summary
Jim Cramer reviews Five Below after its earnings report. He argues the decelerating same-store sales are not a sign of weakness because the company is lapping tough comparisons and has a strong track record under CEO Winnie Park. With raised guidance and a lower valuation after the stock dropped, Cramer calls Five Below a steal.
- Five Below same-store sales decelerated but beat expectations at 14% versus 10% forecast.
- Cramer attributes the deceleration to the law of large numbers and tougher comparisons.
- CEO Winnie Park has led Five Below to beat comps in six out of six quarters.
- Five Below raised full-year earnings guidance by 14% at the midpoint.
- The stock became cheaper after the decline, from about 27.5x to under 24x earnings.
- Cramer says the stock deserved to jump nearly 7% and says the gains evaporated without good reason.
- He concludes Five Below is an incredibly fair price and calls the stock a steal.
Ideas
Five Below stock is a steal.
Five Below's same-store sales deceleration is just the law of large numbers and lapping strong numbers, not weakness. The company beat comp expectations 14% versus 10%, has beaten comps in six out of six quarters under CEO Winnie Park, and raised full-year earnings guidance by 14% at the midpoint, implying over 50% growth versus last year. The selloff made the stock cheaper from 27.5 times to under 24 times this year's earnings, and Cramer views that as an incredibly fair price, calling the stock a steal.
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This CNBC video, published September 04, 2026, features Jim Cramer discussing FIVE. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: Jim Cramer · Tickers: FIVE