The results, which benefitted from an additional week in the latest quarter, came in above analysts’ forecast. They also matched the guidance provided by the management.
The Philadelphia-based discount retailer opened 53 new stores and ended the third quarter with 745 stores, representing a 19% increase year-over-year.
“Continued robust performance from new stores, with a record 53 openings during the quarter, and above-plan comp results were driven by a positive customer response to our compelling assortment of trend-right products across our worlds,” said CEO Joel Anderson.
Looking ahead, the company expects sales to be in the range of $593 million to $600 million in the fourth quarter when it plans to open around five new stores. Comparable store sales are forecast to grow in the 3-4% range, while earnings per share are predicted to be between $1.53 and $1.57.
Buoyed by the strong third-quarter results, the management raised its full-year earnings outlook to the range of $2.60 per share to $2.64 per share on revenues of $1.550 billion-$1.557 billion. Comparable sales are estimated to grow between 3.3% and 3.7% during the fiscal year, when the company intends to open 125 new stores.
Shares of Five Below traded sharply lower throughout Wednesday’s regular session, after gaining 45% since the beginning of the year.