Why Shares of Five Below Stock Slipped This Week

Shares of Five Below (NASDAQ: FIVE) fell by as much as 15% this week, according to data from S&P Global Market Intelligence. The discount retailer for specialty and kids-focused items posted weak growth in the first quarter, leading investors to sell the stock. Over the last five years, the stock is flat while the broad market has soared.Here's why Five Below stock was down again this week.In the first quarter, Five Below's revenue grew 12% to $811.9 million. While this looks good, more than 100% of this growth was due to Five Below opening new stores. Its comparable sales growth, which measures revenue growth from existing locations, was negative 2.3% in the first quarter. Negative comparable sales is a bad thing for a retailer and can lead to deteriorating profit margins with fewer sales over its fixed cost base and labor. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Zum vollständigen Artikel