Five Below Q4 results were solid, says Loop Capital

Loop Capital keeps a Hold rating and $190 price target on Five Below after its Q4 results and guidance. While the firm was surprised by the earnings shortfall after the management affirmed its prior guidance in early January, the miss was driven solely by inventory shrink rather than top-line slowdown or discounting, and it was encouraging to hear that the management is taking concrete steps to “turn the shrink tide”, the analyst tells investors in a research note.