Dillard's vs Five Below

This page compares the business models, financial performance, and market context of Dillard's and Five Below. It provides neutral, accessible analysis of their strategies, operations, and positioning for readers seeking context. Educational content, not financial advice.

This page compares the business models, financial performance, and market context of Dillard's and Five Below. It provides neutral, accessible analysis of their strategies, operations, and positioning...

Comparison Snapshot

Key Financial Metrics

DDS

Metric

FIVE

$9.70B

Market Cap

$10.40B

-8.21%

Potential Profit

4.38%

Sell

Analyst Rating

Buy

Investment Analysis

Dillard's

DDS

Pros

Dillard's fiscal 2025 and 2026 EPS estimates have recently been revised upward, reflecting improving earnings outlook.
The company has shown solid year-to-date stock performance, outperforming its retail peers and the broader market significantly.
Strong financial position with over $1 billion in cash and reduced long-term debt supports operational flexibility and shareholder returns.

Considerations

Despite recent earnings beats, net income showed a slight decline year-over-year, indicating some pressure on profitability.
Retail gross margins declined year over year, with weaknesses in specific categories like women's apparel and home furniture.
Analysts have a consensus 'Sell' rating with price targets implying a significant potential stock price decline over the next year.

Five Below

FIVE

Pros

Five Below operates as a specialty value retailer targeting the tween and teen demographic with a diverse product assortment.
The company reported strong trailing twelve-month revenue of over $4 billion and positive net income nearing $273 million.
Financial ratios reflect reasonable profitability metrics including a normalized return on equity above 17%.

Considerations

Five Below's stock trades at relatively high price-earnings multiples, indicating a premium valuation that may pressure future returns.
Liquidity metrics such as quick ratio below 1.0 could imply tight short-term financial flexibility.
The company currently does not pay dividends, limiting income returns for shareholders.

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About The Companies

Dillard's (DDS)

Dillard's Inc. (DDS) operates a chain of U.S. department stores, selling apparel, cosmetics, home goods and accessories through physical stores and an e-commerce platform. Investors should know it is a brick-and-mortar focused retailer with a material real-estate footprint; store locations and inventory management are central to its operations. Revenue is largely driven by consumer spending and fashion cycles, so sales can be cyclical and sensitive to economic conditions. The company’s size and market cap (around $9.3bn) place it among mid-cap retail names where nimble inventory and merchandising decisions matter. Recent years have seen an industry shift towards omnichannel retailing, and Dillard’s performance will depend on its ability to balance in-store experience with online growth while managing costs. This summary is educational and not personalised investment advice; past performance does not guarantee future returns and investors should assess suitability for their own circumstances.

Five Below (FIVE)

Five Below, Inc. (FIVE) is a US-based specialty retailer focused on value-priced merchandise for teens and pre-teens. Historically known for items priced around $1–$5, the company has been expanding price points, categories and its omnichannel presence. With a market capitalisation of $8.43 billion, Five Below pursues growth through new store openings, higher productivity in existing stores, and investment in e-commerce and private-label assortments. Key factors for investors include store-level sales trends, margin mix, inventory control and the retailer’s ability to stay on-trend with younger shoppers. The business is cyclical and exposed to shifts in consumer spending, competition from discount and online retailers, and supply-chain pressures. This summary is for educational purposes only and is not personalised financial advice. Investors should consider their own risk tolerance, investment horizon and seek regulated advice before acting. Past performance is not a reliable indicator of future results.

Which Baskets Do They Appear In?

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Recent data shows that initial jobless claims have risen to their highest level since June, signaling a potential cooling of the U.S. labor market. This trend could shift consumer spending towards essentials and value, benefiting discount retailers and consumer staples companies.

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Which Baskets Do They Appear In?

Discount Retailers: What's Next as Job Market Cools

Recent data shows that initial jobless claims have risen to their highest level since June, signaling a potential cooling of the U.S. labor market. This trend could shift consumer spending towards essentials and value, benefiting discount retailers and consumer staples companies.

Published: September 5, 2025

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Comparison Snapshot