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Five Below Stock Jumps Following Earnings Beat

The Philadelphia discount retailer also sharpened its full-year guidance.
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Shares of Five Below jumped Thursday after the Philadelphia discount retailer reported-stronger-than-expected third-quarter earnings and revenue and lifted its fiscal 2020 guidance.

For the quarter ended Nov. 2 Five Below earned 18 cents a share, down from 24 cents in the year-earlier quarter. Analysts surveyed by FactSet came to a consensus estimate of 17 cents for the latest period.

Revenue came in at $377.4 million, up nearly 21% year over year and above the consensus view of $374 million.

For the fiscal year, Five Below expects net sales of $1.88 billion to $1.89 billion with comparable-store sales up 2.5%. Previously, the company estimated a range of $1.87 billion to $1.89 billion.

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The company expects the year's earnings to range $3.11 to $3.19 a share. That compares with its previous view of $3.08 to $3.19.

Analysts are expecting the company to report full-year earnings of $3.15 a share on sales of $1.9 billion.

“[Our] assortment of $1 to $5 items, as well as our new Ten Below Gift Shop section highlighting toys and games, reinforces our position as a go-to destination for holiday stocking stuffers and gifts,” CEO Joel Anderson said in a statement.

The company has opened 144 new stores so far in fiscal 2020, up from the 120 new stores it opened during the first three quarters of fiscal 2018. Five Below now operates 900 stores in 36 states.

Five Below shares at last check were up 2.5% to $121 on Thursday.