Discount store chain Five Below Inc. (NASDAQ: FIVE) reported lower profit for the first three months of fiscal 2022, despite an increase in sales. First-quarter earnings exceeded the market’s prediction, while sales missed.
Net sales increased 7% year-over-year to $639.6 million in the first quarter but fell short of expectations. However, comparable-store sales decreased 3.6% during the three-month period.
Net profit declined to $32.7 million or $0.59 per share from $49.6 million or $0.88 per share in the first quarter of 2021. Analysts had forecast a slower growth.
Read management/analysts’ comments on quarterly results
Shares of Five Below traded lower early Thursday, extending the recent downturn. It has lost 37% since the beginning of the year.