Five Below (June 2022)

Overview:
Budget store
Focus on products under $5
Focus on Teen Tween age group
Five Beyond: allowing them to sell products over $5

Growth:
Went public in 2012
Great increase in EPS, Equity
Growth is slowing down but still strong at over 40 and 30 % respectively
Negative same store sales for first quarter 2022
Planning to triple number of stores by 2030 and doubling EPS by 2025
Debt:
Debt ratio at about 60%
Started out around that before dropping down to 30%
Recently came back up in 2019
Management:
CEO is former head of Walmart’s online platform

Pros
Good past growth
Not too much debt
Aggressive expansion
Has proved ability to expand in the past

Cons
Negative same store sales first quarter 2022
Growth slowing (still strong)
Is their market getting saturated??