price Christian Louboutin Outlet target

Five Below Earns Buy Rating On Its Bright Future Outlook Five Below, Inc. (NASDAQ:FIVE) is a chain of 366 specialty retail stores in the United States. The company offers a range of products,including fashion apparel, packaged food, PC accessories and a variety of seasonal products. The company sets prices at $5 or below for all of its products. It primarily targets teens and preteens. I am bullish on the company's future outlook because of its store expansion plan, as there is plenty of white space available across the country. In addition to this, the company is also building a strong distribution network to support its expansion. It has managed to build strong merchandising and product development team to address its target audience and create brand awareness. Furthermore, I have used P/E and EV/EBITDA multiples to achieve a price Christian Louboutin Outlet target of $36.74 per share, which means potential for price appreciation
Expansion PlansThe company is focusing on expanding its footprint by opening new stores. It has opened 12 new stores last quarter and plans to add one more in the fourth quarter of fiscal year 2014. FIVE will end up with 62 new stores in fiscal year 2014. This will take the total store count to 366 stores (shown in blue in the figure below). Furthermore, the company plans to explore new markets by opening 70 new stores by the end of 2015 (shown in mustard). These ongoing expansion plan will help the company increase its customer base, which will drive sales growth. There are a lot of white spaces available for the company, as shown in the figure below, which shows that it has a lot of future growth potential. This distribution center is located across 605,000 square feet and is fully operational since 2013. But considering its future expansion plan, the company is constructing a new distribution center in New Jersey at the East Coast and is expected to spend approximately $25 million on this project, before it becomes operational in 2015. This new center covers 1,045,000 sq. approximately double the size of its existing distribution center. The company is expecting that this new facility will be completely operational by the second half of 2015.
This facility will increase the company's ability to supply additional stores and make sure operations for the additional stores will continue to run smoothly. More specifically, it will support the company's existing and new stores on the East Coast. It will reduce the dependency on the existing distribution center and make the overall distribution center more efficient. FIVE will experience a reduction in freight costs due Christian Louboutin Outlet Online to the nearby distribution center. Furthermore, the inventory management will become more efficient and there will be fewer shortages of stock.
The company is also Christian Louboutin planning to introduce the ERP system. The ERP system will help the company maintain the required level of inventory by automatically updating inventory after sales.