Five Below (NASDAQ: FIVE) reported a 24% jump in earnings for the fourth quarter of 2019 helped by higher revenue. The results exceeded analysts’ expectations. Further, the company is not providing a forecast due to the uncertainty related to the Covid-19
Net income jumped by 24% to $110.4 million or $1.97 per share. Net sales grew by 14% to $687.1 million while comparable-store sales decreased by 2.2%. Analysts had expected EPS of $1.94 on revenue of $687.05 million for the fourth quarter.
As announced earlier, all of the company’s stores will be temporarily closed beginning Thursday evening through March 31. With the rapidly evolving Covid-19 situation, the company is taking the necessary steps to address the current environment across its stores, distribution centers, and WowTown. The company will be paying its associates through this period.
Given the uncertainty related to Covid-19, the company will not be providing guidance for the first quarter or for fiscal 2020. If not for Covid-19, the company would have expected fiscal 2020 to be in line with its 2020 goals.
“We will provide pay and benefits to our impacted associates through March 31st and will continue to monitor developments, follow the guidance of health authorities, and lead with our values when making decisions. We are confident that we have strong teams in place to guide our growing company through this unprecedented situation and look forward to safely reopening our stores,” said CEO Joel Anderson.
The company opened 6 new stores and ended the fourth quarter with 900 stores in 36 states. This represents an increase in stores of 20% from the end of the fourth quarter of fiscal 2018.