Varenne Capital Partners Invests $25.30 Million in Five Below, Inc. $FIVE

Key Points

• Varenne Capital Partners acquired 140,847 Five Below shares worth approximately $25.3 million, making the retailer about 4.2% of the fund’s portfolio and its 11th-largest holding.
• Five Below delivered a strong second quarter, with EPS of $1.68 versus the $1.40 consensus and revenue up 22.9% year over year to $1.26 billion. Management raised fiscal 2026 guidance and authorized a $600 million share-repurchase program.
• Investor sentiment has improved, reflected in several analyst price-target increases and a “Moderate Buy” consensus, though decelerating comparable-sales growth, tariffs and margin pressure remain risks.

Varenne Capital Partners acquired a new position in Five Below, Inc. (NASDAQ:FIVE - Free Report) during the 2nd quarter, according to its most recent filing with the SEC. The fund acquired 140,847 shares of the specialty retailer's stock, valued at approximately $25,305,000. Five Below makes up about 4.2% of Varenne Capital Partners' holdings, making the stock its 11th largest holding. Varenne Capital Partners owned about 0.25% of Five Below as of its most recent SEC filing.

A number of other large investors have also recently added to or reduced their stakes in FIVE. Northwestern Mutual Wealth Management Co. lifted its stake in Five Below by 40,774,210.3% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 55,453,062 shares of the specialty retailer's stock valued at $10,445,139,000 after buying an additional 55,452,926 shares in the last quarter. BlackRock Inc. purchased a new position in Five Below during the second quarter worth $964,867,000. Norges Bank acquired a new position in shares of Five Below in the fourth quarter worth $182,786,000. AQR Capital Management LLC raised its holdings in shares of Five Below by 176.0% in the fourth quarter. AQR Capital Management LLC now owns 1,168,832 shares of the specialty retailer's stock worth $220,161,000 after acquiring an additional 745,272 shares during the last quarter. Finally, Wellington Management Group LLP lifted its position in shares of Five Below by 54.4% in the second quarter. Wellington Management Group LLP now owns 1,811,650 shares of the specialty retailer's stock valued at $325,717,000 after acquiring an additional 638,049 shares in the last quarter.

Five Below News Roundup

Here are the key news stories impacting Five Below this week:

• Positive Sentiment: Five Below reported second-quarter earnings of $1.68 per share, well above the $1.34–$1.40 analyst range, while revenue rose 22.9% year over year to approximately $1.26 billion. Results were supported by strong traffic, repeat visits, comparable-sales growth and demand for new, trend-oriented merchandise. Five Below Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Management raised fiscal 2026 guidance to $5.63 billion–$5.71 billion in revenue and $9.83–$10.31 in EPS. Third-quarter EPS guidance of $1.01–$1.13 also exceeds the prior consensus estimate, signaling continued operating momentum. Five Below Q2 Earnings Call Centers on Traffic and Raised Outlook
• Positive Sentiment: The company authorized a $600 million share-repurchase program, which could support per-share earnings and signal confidence in future cash generation. Five Below Unveils $600 Million Share Repurchase Plan
• Positive Sentiment: Analysts raised targets following the earnings beat: Goldman Sachs moved to $306 with a Buy rating, JPMorgan to $368 with an Overweight rating, Truist to $297 with a Buy rating and Morgan Stanley to $300 while maintaining Equal Weight. These revisions reinforce improving expectations for growth and margins.
• Neutral Sentiment: Jim Cramer highlighted that comparable-sales growth is decelerating, although it remains strong. Consensus targets imply further upside, but target-price metrics alone are not reliable predictors of returns.
• Negative Sentiment: Some retail earnings point to a wider split among U.S. consumers. Five Below still faces potential tariff and margin pressures, and slowing comparable-sales growth could temper the rally if traffic or discretionary spending weakens. Retail Earnings Just Exposed a Bigger Divide in the U.S. Consumer Economy

Analyst Upgrades and Downgrades

FIVE has been the topic of a number of analyst reports. Royal Bank Of Canada lowered Five Below to a "sector perform" rating in a research note on Thursday, July 9th. The Goldman Sachs Group upped their target price on shares of Five Below from $257.00 to $306.00 and gave the company a "buy" rating in a report on Friday. Wells Fargo & Company raised their price target on shares of Five Below from $260.00 to $295.00 and gave the stock an "overweight" rating in a research note on Thursday. Weiss Ratings reiterated a "hold (c)" rating on shares of Five Below in a report on Wednesday. Finally, Susquehanna downgraded shares of Five Below to a "neutral" rating in a research note on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and thirteen have issued a Hold rating to the stock. According to MarketBeat.com, Five Below has a consensus rating of "Moderate Buy" and an average price target of $300.70.

Five Below Stock Performance

Shares of NASDAQ:FIVE opened at $252.20 on Monday. The stock's 50-day moving average price is $218.05 and its two-hundred day moving average price is $217.90. Five Below, Inc. has a 12-month low of $137.77 and a 12-month high of $263.88. The firm has a market cap of $13.95 billion, a price-to-earnings ratio of 22.64, a PEG ratio of 1.00 and a beta of 0.99.

Five Below (NASDAQ:FIVE - Get Free Report) last posted its quarterly earnings results on Wednesday, September 2nd. The specialty retailer reported $1.68 EPS for the quarter, beating the consensus estimate of $1.40 by $0.28. Five Below had a return on equity of 22.13% and a net margin of 11.65%.The company had revenue of $1.26 billion during the quarter, compared to analysts' expectations of $1.22 billion. During the same quarter in the previous year, the business earned $0.81 EPS. The firm's revenue was up 22.9% on a year-over-year basis. Five Below has set its Q3 2026 guidance at 1.010-1.130 EPS and its FY 2026 guidance at 9.830-10.310 EPS. As a group, research analysts forecast that Five Below, Inc. will post 10.27 earnings per share for the current fiscal year.

Five Below Profile

Five Below, Inc NASDAQ: FIVE is an American specialty discount retailer offering a broad assortment of merchandise priced primarily at $5 or below. Since its founding in 2002 by David Schlessinger and Tom Vellios, the company has pursued a value-focused retail model targeting tweens, teens and beyond, with stores designed to deliver trend-driven products at an accessible price point. Headquartered in Philadelphia, Pennsylvania, Five Below has grown into a national chain operating in dozens of U.S.

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