Shares of Five Below Inc (NASDAQ:FIVE) edged higher in after-hours trading Wednesday after the discount retailer posted better-than-expected second quarter results and issued robust guidance for the remainder of the fiscal year. The stock rose 2.5% as investors responded positively to stronger profit and revenue metrics alongside upbeat forecasts that exceeded Wall Street expectations.
The company reported adjusted earnings per share of $0.77 for the quarter ended August 2, surpassing the consensus estimate of $0.63. Revenue rose 23.7% to $1.03 billion from a year ago, beating the $996 million estimate and marking continued top-line strength for the low-price retailer.
Comparable sales, a key gauge of demand at stores open at least one year, jumped 12.4%, reflecting strong consumer traction. Operating income also improved to $52.4 million from $41.5 million, with adjusted operating income reaching $55.1 million from $37.0 million in the same period last year.
“We are excited to deliver second quarter results that exceeded our sales and earnings expectations,” CEO Winnie Park said in the earnings release. “These results demonstrate the effectiveness of our strategy and are a testament to the hard work, dedication and tight collaboration of our teams across the company.”
Five Below, known for its fun-focused assortment and $5-and-under price point, opened 32 net new stores during the quarter, ending with 1,858 locations—an 11.5% increase year-over-year. The company has leaned into aggressive expansion and product curation to differentiate its brand as economic uncertainty continues to shape consumer behavior.
For the third quarter, the company guided earnings between $0.09 and $0.21 per share, well above analysts’ forecast of $0.02, with revenue expected to reach $950 million to $970 million. Annual EPS is projected between $4.56 and $4.96, also topping consensus, signaling confidence heading into the holiday season.
Source :
https://www.investing.com/news/stock-market-news/five-below-stock-rises-after-q2-earnings-beat-strong-guidance-boosts-outlook-4213378
