Categories Earnings, Retail

Five Below Q3 2018 Earnings Preview: Will tariffs affect results?

Five Below (FIVE) is expected to post third-quarter results in after-hours trading coming Wednesday, Dec. 4. The discount store chain is expected to earn $0.19 per share on revenue of $304.1 million.

Competitor Dollar Tree (DLTR) posted quarterly results this Thursday with earnings of $1.18 per diluted share, beating estimates.

Trump effect and trade war: Tariffs imposed by the United States on the world in 2018

The trade war between the Trump administration and China could catch up to Five Below like its competitors and peers, as fresh taxes on imports worth $200 billion have resulted in price escalation affecting the arrival of low-priced consumer items. While usually tariffs were slapped on industrial goods imported from the Asian country, this new predicament has forced Five Below and its peers to sell the products at old prices for losses or pull them from the shelves.

If the taxes are not rolled back, profitability will be under pressure in the long term, resulting in headcount reduction and store closures.

Last quarter, Five Below saw earnings jump 49% helped by new stores performance, healthy comparable sales, strong gross margin performance, and favorable tax rate. The high-growth value retailer’s stock rose more than 8% in the aftermarket on Sep. 6 with both earnings and revenue beating market expectations.

Listen to publicly listed companies’ earnings conference calls along with the edited closed caption text

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top