Categories Consumer, Earnings

Five Below Q3 results beat street view; lifts FY18 outlook

A marked uptick in comparable store sales and new store openings pushed up earnings of discount store operator Five Below (FIVE) in the third quarter. The results also came in above analysts’ forecast.

Net profit increased to $13.5 million or $0.24 per share in the October quarter from $9.9 million or $0.18 per share a year earlier. During the three-month period, sales surged 22% to $313 million. Same-store sales were higher by 4.8% compared to last year.

Five Below Q3 2018 earnings infographic
Five Below Q3 2018 earnings infographic

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.

Five Below stock climbs on rosy outlook

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.

 

We’re on Apple News! Follow us to receive the latest stock market, earnings and financial news at your fingertips

Most Popular

CVX Earnings: Chevron reports lower revenue and profit for Q3 2024

Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to

Key highlights from Exxon Mobil Corporation’s (XOM) Q3 2024 earnings results

Exxon Mobil Corporation (NYSE: XOM) reported its third quarter 2024 earnings results today. Total revenues and other income remained relatively flat at $90 billion compared to the same period a

AAPL Earnings: Apple Q4 2024 sales rise 6% YoY, beat estimates

Apple Inc. (NASDAQ: AAPL) reported an increase in revenues for the fourth quarter of 2024. The top line came in above estimates. The gadget giant generated revenues of $94.9 billion

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top