Five Below, Inc. | $FIVE Stock | Shares Rally 21% After Strong Q1 Earnings

Five Below Photo

Five Below, Inc. (NASDAQ: FIVE) 

Shares of Five Below, Inc. are up $17, or 22% after the Philadelphia-based specialty retailer reported better-than-expected first quarter earnings and raised its guidance for the second quarter on Wednesday, June 6.

The stock has gained 23 percent in the last twelve months.

FIVE Earnings & Outlook

The company had a net income of $21.8 million, or $0.39 per share during the quarter. This compares to a net income of $8.4 million, or $0.15 per share that the company reported in the year-ago period.

Revenue climbed to $296.3 million from the $232.9 million figure the company posted in the prior-year quarter. Analysts polled expected earnings of $0.32 per share on a revenue of $290.9 million, according Thompson Reuters.

The company expects a net income of $0.36 to $0.38 per share and sales of between $332 million and $335 million for the second-quarter. Analysts estimate sales of approximately $327 million and earnings of $0.34 per share.

Five Below CEO Comments

We are very pleased with the strong start to fiscal 2018, as we delivered both sales and earnings above our guidance ranges for the first quarter. Continued outperformance from our new stores and healthy comparable sales were accompanied by strong gross margin performance, SG&A leverage and tax rate favorability, resulting in EPS that more than doubled versus last year,” said, Joel Anderson, President and Chief Executive Officer of Five Below, Inc.

Our consistent performance continues to reinforce our confidence in the 2,500 plus nationwide store opportunity we see for Five Below. We are making disciplined investments to support that future growth and are excited to announce our plans to build a new distribution center just south of Atlanta, which will provide us with capacity and flexibility as we continue to grow in the Southeast,” the CEO added.  

Five Below, Inc. Company Profile

Five Below, Inc is a specialty retailer headquartered in Philadelphia, Pennsylvania. The company primarily serves pre-teens and teen customers.

It offers beauty products including branded cosmetics, nail polish, fragrance, lip gloss; and living space items comprising plush items, lighting, glitter lamps, frames, posters, novelty décor, fleece blankets, pillows, incense, candles, and related items.

It also provides accessories, such as novelty jewelry, athletic bottoms and tops, socks, scarves, sunglasses, and gloves.

In addition, the company offers fitness accessories, sport balls, hand weights, jump ropes, brand board games, collectibles, puzzles, and toys.

Further, it provides electronic accessories, including chargers, video games, headphones, and DVDs. The company also sells craft activity kits; such as stickers, markers and crayons.

Five Below also offers trend-right items for school consisting of fashion journals and notebooks, backpacks, locker accessories, and novelty pencils and pens.

Further, it offers decorations, greeting cards, party goods, and gag gifts, as well as special and every day occasion merchandise items; assortment of novelty and classic candy bars, seasonal-related candy, movie-size box candy, and snack and gum food; and seasonally-specific products used to decorate and celebrate for events.

It operated a total of 625 stores across 32 states as of February 2018. Five Below was founded in 2002. – Reuters