Five Below stock soars 10.8% as Q2 revenue tops estimates

PHILADELPHIA - Five Below, Inc. (NASDAQ:FIVE ) saw its stock surge 10.8% in after-hours trading Wednesday after the discount retailer reported better-than-expected revenue for the second quarter.

The company posted Q2 revenue of $830.1 million, surpassing analyst estimates of $821.91 million. However, this represents just a 9.4% increase from $759.0 million in the same quarter last year. Comparable sales decreased by 5.7% YoY.

Adjusted earnings per share came in at $0.54, meeting Wall Street expectations. This compares to $0.84 in Q2 2023.

"Our second quarter results fell short of what we know this business is capable of delivering," said Ken Bull, Interim CEO, President and COO of Five Below. "We are refocused on delivering an edited assortment that leads with value and newness to wow our core pre-teen and teen customer."

For Q3, Five Below expects revenue between $780 million and $800 million, compared to analyst estimates of $790 million. The company forecasts adjusted EPS of $0.10 to $0.22, versus the $0.13 consensus.

Looking ahead to full-year fiscal 2024, Five Below projects revenue of $3.73 billion to $3.80 billion and adjusted EPS of $4.35 to $4.71. Both ranges encompass current analyst expectations.

The company opened 62 new stores in Q2, ending the quarter with 1,667 locations across 43 states. This represents an 18.5% increase in store count from Q2 2023.

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Source: Investing.com