Earlier this year we identified FIVE as an ‘Early Reopening Outlier’, based on strong consumer Demand (relative to peers) and positive macro trends.
FIVE shares gained by as much as +20% in the months following our bullish call, but we always approach earnings with a critical lens – LikeFolio's short-term earnings signal for FIVE showed a significant Mention growth slowdown in recent months, indicating a bearish earnings position.
Note the lack of quarter-over-quarter growth seen on the Purchase Intent Chart.
Yesterday, Five Below reported 21Q2 earnings up +117% YoY. However, sales fell short of analysts' raised expectations, and shares have sold off as a result.
Although we’re still maintaining a cautiously bullish long-term outlook, this serves as an excellent example of how our real-time data (and unbiased approached to earnings) allows us to profit from both sides of trade.