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Five Below Profit, Sales and Outlook Beat Estimates

Five Below, the retailer of tech and accessories for tweens and teens, saw a 25% surge in revenue for the latest quarter.

Shares of Five Below  (FIVE) - Get Five Below, Inc. Report were higher as the retailer of low-priced apparel, tech, accessories, toys and crafts for tweens and teens reported fiscal-fourth-quarter net income per share advanced 12% on 25% higher sales.

The Philadelphia company's results for profit, revenue and same-store sales, as well as its outlook, were stronger than Wall Street analysts had estimated.

For the quarter ended Jan. 30, Five Below earned $2.20 a share compared with $1.97  a share in the year-earlier quarter. 

Net sales reached $858.5 million from $687.1 million. Same-store sales rose 13.8%.

A survey of analysts by FactSet produced consensus estimates for the quarter of GAAP earnings of $2.12 a share on revenue of $839.3 million. 

The consensus estimate for same-store sales was an increase of 10.9%.

For the first quarter Five Below is estimating profit of 56 to 68 cents a share, against the FactSet consensus estimate of GAAP earnings of 36 cents, or an adjusted 40 cents.

And it pegs revenue at $540 million to $560 million, based on opening 60 of the new stores. FactSet's call: $442 million. 

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At last check Five Below shares were trading up 6.8% at $209.25 a share. They closed the regular Wednesday trading session up 1.3% at $196.01.

The stock regular-trading 52-week high was above $201, set two weeks ago. Almost exactly a year ago, the stock was trading at a 52-week low $47.53.

Five Below operates more than 1,000 stores in 40 states. Joel Anderson, president and chief executive, said Five Below plans to open 170 to 180 new stores. And it is expanding its distribution-center network by adding an Arizona facility this year. 

In mid-January, with Five Below stock trading around $190, Barron's interviewed UBS's chief U.S. stock strategist, Keith Parker. 

Parker had recently polled his firm's analysts about their top stock picks for 2021, and Five Below was among them, Barron's reported.

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