Five Below Inc could see sales boost as Big Lots closes stores, Oppenheimer says

Former BL Stores

12/09/2024 18:28

** Brokerage Oppenheimer says discount store operator Five
Below  FIVE.O  will see market share opportunities from store
closings at Big Lots  BIGGQ.PK 
    ** Five Below's shares up 1.4%
    ** Discount home goods retailer Big Lots initiated Chapter
11 bankruptcy proceedings on Monday and said it plans to close
about 20% of its roughly 1,400 outlets
    ** Both the companies have significant core customer
overlap, with initial store closings at BIGGQ poised to cede
market share worth $70 mln-75 mln - Oppenheimer analyst Brian
Nagel
    ** Over time, a complete shutdown of BIGGQ could suggest
total addressable market share of $300 mln-320 mln and comp lift
of 300-500 bps for Five Below - Nagel
    ** Brokerage maintains cautious stance on Five Below due to
pressures being faced by low-to-middle income consumer
    ** 10 of 24 brokerages rate Five Below's shares "buy" or
higher, 14 "hold"; median PT $100 - LSEG
    ** Including session's move, company's shares down almost
60% YTD

 (Reporting by Savyata Mishra in Bengaluru)
 ((Savyata.Mishra@thomsonreuters.com))