Categories AlphaGraphs, Earnings, LATEST, Retail

Five Below stock climbs on rosy outlook

Five Below (FIVE) reported a 49% jump in earnings for the second quarter helped by new stores performance, healthy comparable sales, strong gross margin performance, and favorable tax rate. The high-growth value retailer’s stock rose more than 8% in the aftermarket as its earnings and revenue exceeded market expectations. Also, the company guided third quarter above Street’s view and raised its fiscal 2018 guidance.

With revenue climbing by 22.7% to $347.7 million, the company’s earnings soared 49.1% to $25.1 million or $0.45 per share. EPS included a $0.03 benefit in the latest quarter due to the accounting of employee share-based payments. Comparable sales increased by 2.7%.

The company opened 34 new stores and ended the second quarter with 692 stores in 33 states. This represents an increase in stores of 18.5% from the end of the previous year quarter.

Five Below Q2 2018 Earnings Infographics

Looking ahead into the third quarter, Five Below expects net sales of $301 million to $304 million and EPS of $0.17 to $0.19. The sales outlook is based on the opening of about 50 new stores and assuming a 3% to 4% increase in comparable sales. Net income is predicted to be $9.7 million to $10.7 million.

For the fiscal year 2018, Five Below lifted its net sales outlook to a range of $1.528 billion to $1.540 billion from the range of $1.502 billion to $1.517 billion, and its EPS guidance to the $2.51 to $2.57 range from the prior estimate of $2.42 to $2.48. The sales forecast is based on the opening of about 125 new stores and assuming a 2.5% to 3% rise in comparable sales.

Shares of Five Below ended Thursday’s regular trading session up 0.65% at $115.51 on the Nasdaq. The stock had surged 74% so far this year and a whopping 136% in the past one year.

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Tags

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