Five Below’s 79% stock surge proves its bold turnaround is working
Discount retailer Five Below has seen a strong turnaround in 2025 under the leadership of CEO Winnie Park. The company's stock surged, delivering a 79% return for shareholders—far outpacing the broader stock market today. Investor confidence appears to be growing as sales and profits climb again.
The retailer's earnings per share (EPS) are now forecast to reach at least $6.10 in 2025, up from $4.60 the previous year. This improvement follows a period of decline in 2024. Same-store sales are also expected to jump by 12.5%, reversing last year's downturn.
Management changes have played a key role in the recovery. Under Park's leadership, the company abandoned its separate 'Five Beyond' section, which sold pricier items. Instead, higher-margin products were integrated throughout the store, helping to lift overall sales. Five Below has ambitious growth plans, aiming to expand to over 3,500 locations in the long run. New stores reportedly recover their investment costs within about a year, making expansion financially attractive.
The company's stock performance and sales growth suggest a successful shift in strategy. With a focus on profitable expansion and improved store layouts, Five Below is positioning itself for further gains. Shareholders have already benefited from the turnaround, with returns significantly beating the S&P 500.
