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Wells Fargo confident on Five Below

Published 10/10/2018, 11:24 AM
© Reuters.  Wells Fargo confident on Five Below
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  • Wells Fargo (NYSE:WFC) walks away from a meeting with Five Below (FIVE -3.8%) management impressed with the retailer's outlook.
  • "The company’s tone on its top line prospects, especially around holiday, was clearly positive. It sees rising retail cost pressures associated with issues like wages and freight as manageable and sounds confident in its ability to continue to achieve its goal of 20% annual earnings growth through 2020," reads the WF update.
  • On the topic of tariffs, Five Below reminded that only 15% of its sales would be impacted based on the current target list and that it plans to "work with vendors, raise prices, and geographically shift sourcing to mitigate the issue."
  • Wells keeps an Outperform rating on Five Below due to its high expectations for the remainder of the year.


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