Five Below (FIVE) Defies Industry Trend, Stock Up 65% YTD |

Product Range & Pricing a Major Driver

Five Below’s primary focus on teens and pre-teens, helps the company enhance customer base by attracting shoppers. Further, the company is known for its impressive range of merchandise, as the company remains committed toward making innovations and refreshing its product range per the evolving consumer trends. These factors combined with the company’s pricing strategy of selling products for $5 or below enable it to cater to demographic shoppers, alongside resonating with value-seeking customers.

We believe that Five Below’s wide assortment of trend right merchandise, solid in-store and online experience along with favorable pricing strategy are likely to remain major growth drivers.

Focus on Margin Expansion

Enhancing margins is one of Five Below’s key growth strategies. The company remains focused on achieving margin expansion through efficient cost structure, solid average net sales per store, supply-chain initiatives and focus on attaining economies of scale. Evidently, the company witnessed operating margin growth of 150 basis points in third-quarter fiscal 2017, backed by improved gross margin and lower SG&A expenses.

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Five Below (FIVE) Defies Industry Trend, Stock Up 65% YTD –