Five Below Brushes Off Retail Curse With Double-Digit Sales Gain

Brushing aside retail weakness, Five Below managed to beat top- and bottom-line estimates in its first quarter. The retailer of items for $5 or less earned 7 cents a share over the three months to April, a penny over analysts' estimates. Sales grew at a rapid pace, up nearly 32% to $126 million and beating expectations of $122 million. Comparable-store sales increased 6.2%, while total store count grew 25% from a year earlier. The rapidly-expanding chain now has 323 stores in 20 states nationwide. Tempering excitement somewhat, second-quarter revenue guidance of $150 million to $152 million and EPS of 12 cents to 13 cents did not exceed analysts' forecasts.

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