Five Below: FIVE Star Growth Story: Takeaways From Our Meeting with Management

Research evidence excerpt

Five Below: FIVE Star Growth Story: Takeaways From Our Meeting with Management

Deutsche Bank

Research

Rating Company Date

Buy Five Below 11 June 2026

North America Reuters Bloomberg Rating Buy

United States FIVE.OQ FIVE US Price target (USD) 318.00 Price at 10 Jun 26 195.85

52-week range 247.71 – 121.83

Consumer

Retailing / Department Stores Valuation & Risks

& Broadlines

FIVE Star Growth Story: Takeaways From Our

Meeting with Management KrisztinaResearchKataiAnalyst

+1-212-250-0590

Earlier this week, we hosted an investor dinner with FIVE CFO Dan Sullivan and

Jessica Taylor VP of IR Christiane Pelz. We came away with increased conviction that the Research Associate

ongoing transformation at FIVE is foundational in nature, supporting a transition +1-212-250-3165

toward a more structurally durable, traffic-led comp algorithm with multiple levers

to sustain growth beyond individual product cycles. Nick Breckenridge

Research Associate

While management acknowledged that certain elements of 1Q performance are +1-212-250-9179

unlikely to repeat, they expressed confidence in the durability of the underlying

playbook, driven by: 1) sharper customer focus (Gen Alpha/Gen Z and millennial

moms), 2) a reinvigorated in-store experience anchored in newness and improved

in-stocks/merchandising, and 3) a clearer value proposition. Importantly, the

buildout of digital and social capabilities—along with AI-driven content and

marketing—represents a meaningful new muscle, enabling earlier trend

identification and allowing FIVE to actively shape consumer demand.

That said, current investor debate largely centers on the underlying durability of

FIVE’s comps and its ability to maintain sustained traffic, conversion, and new-

customer retention as trends normalize.