And they get ahead of these trends and that's what's really helped them. And they're really one of the last kid's retailers within the US. But there's no one out there that's really the last true comparable for Five. So your big retailers, your Amazons, Walmarts, Targets, they sell a lot of this product. RACHELLE AKUFFO: And who would you say would be the main competition for Five Below when it comes to some of these licensed products from the "Barbie" movie and some of these other big franchises?ĭAVID BELLINGER: Yeah, it's an interesting question. This is a nice long-term trajectory here. And it's not just a single quarter or two. And that's what I think gets investors really bullish on this name. But if you step back and just look at the growth potential of this model going from 1,200 to 3,500 plus stores, this company is on a real nice trajectory to get to somewhere of five billion plus in sales.Īnd you could easily see earnings power go from between $5 and $6 per share this year, upwards of $10. Some of these smaller catalysts, they're not a huge deal for their stock but they could help out in some type of way.Īnd we'll be keeping a close eye on this "Barbie" release and the Box Office numbers as they come in. There's a "Paw Patrol" movie coming out as well. RACHELLE AKUFFO: So, would this be the best time to get in then to Five Below versus, sort of, obviously, the movie is coming out shortly or isn't it best to sort of wait and see as we have like more blockbusters also coming out this summer?ĭAVID BELLINGER: Yeah, there's clearly a new slate of movies that's come out that we haven't had over the past few years. And that's what really unleashes the power of the Five Below model and gets them a nice new customer base that continues to spend Well So we've seen that historically too with things like fidget spinners and other crazes. They shop other categories and they come back. They really discover the Five Below brands. It could generate enough buzz via social media and other means to get people in the store. We've come across 30 plus licensed "Barbie" items, while that's not material, just given that Five Below sells thousands of products within their store. They fill their stores with a number of items. We saw some precedent with this, you mentioned "Frozen." We had "The Super Mario Brothers" released over the Easter weekend that was much better than expected from a domestic Box Office standpoint.Īnd Five gets ahead of these trends. So Five Below historically has been one of these companies that's drafted off new intellectual property very well. So from an investor perspective here, how should people be approaching Five Below in relation to the success that we might see with the "Barbie" movie?ĭAVID BELLINGER: Yeah. The analyst behind the call is David Bellinger and he joins me now. Citing previous successes from blockbusters like "Frozen." Roth MKM says the buzz around the film could drive traffic to stores like Five Below in particular. "Barbie's" big Box Office debut could give retailers a boost, at least, according to our next guest. David Bellinger, Roth MKM Consumer Growth & eCommerce Senior Analyst, explains how the success of Greta Gerwig's "Barbie" movie could drive growth for discount retailer Five Below as branded items fill the shelves. From fashion trends to viral social media campaigns, Mattel's landmark doll brand may even have consumers of all spending calibers covered. The world is becoming a lot more pink as the hype surrounding the "Barbie" movie continues to grow.
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