However, the retailer's second-quarter earnings of $64.8 million, or $1.15 a share, beat analysts average estimate of $1.11 a share, for the period ending July 31.
Shares of Five Below on Wednesday fell 9.1% to $196.35 after hours. The stock had risen 1.5% to $216.05 in the regular session.
Five Below's net sales increased by almost 52% to $646.6 million from $426.1 million in the same period last year, and by 55% from $417.4 million in the second quarter of 2019, according to a company statement. Analysts on average were expecting $658 million in sales, according to FactSet as MarketWatch reported.
“We had another strong quarter, with the team executing well in a dynamic operating environment," Five Below CEO Joel Anderson said in the statement. "Sales increased 55% and earnings per share increased 125% versus the second quarter of 2019. Once again, the strength was broad-based throughout our worlds.
"New store growth continued with the opening of 34 new stores across 19 states, bringing our new store count for the first half to a record 102 new stores,” Anderson said.
Five Below's outlook for the third quarter projects net sales between $550 million and $565 million, based on opening about 40 to 45 new stores and assuming a mid-single digit increase in comparable sales.
It expects net income in the $12.8 million to $16.7 million range with diluted income per share estimated from 23 cents to 30 cents a share.
Philadelphia-based Five Below operates over 1,100 discount retail stores in 39 states, with most items priced between $1 and $5. The company offers merchandise in eight different departments or “worlds,” including style, room, sports, tech, create, party, candy and now.