- Increased FY Net Sales Forecast: Five Below has raised its full-year net sales forecast to a range of $4.44 billion to $4.52 billion, up from the previously projected $4.33 billion to $4.42 billion.
- Improved Earnings Projections: The company expects net income to be between $253 million and $275 million, and its earnings per share (EPS) forecast has increased to a range of $4.56 to $4.96, compared to the prior range of $4.04 to $4.51.
- Third Quarter Outlook: Five Below projects third-quarter net sales in the range of $950 million to $970 million, exceeding the estimate of $927.5 million. EPS for the third quarter is expected to be between 9.0 cents and 21 cents, whereas analysts estimated a loss of 2.4 cents per share.
- Strong Second Quarter Results: The company reported second-quarter net sales of $1.03 billion, marking a 24% year-over-year increase and surpassing the estimate of $993.2 million. Comparable sales rose by 12.4%, beating the estimate of 9.14%.
- Solid Earnings Performance: Second-quarter EPS came in at 77 cents, up from 60 cents year-over-year and surpassing the estimate of 55 cents.
- Store Expansion Update: The total number of locations increased by 1.8% quarter-over-quarter to 1,858, slightly above the estimate of 1,857. The company opened 32 new stores, which is a 48% decrease year-over-year, but ahead of the estimate of 30.86 new stores.
- Market Reaction: Following these announcements, Five Below shares rose by 4.9% in post-market trading, reaching $151.49 with 10,312 shares traded.
- Analyst Opinions: Current coverage includes 10 buys, 12 holds, and 2 sells.
Five Below on Smartkarma
Analysts at Baptista Research are bullish on Five Below, a retail chain known for its trend-right products at value prices. In their report titled “Five Below: An Enhanced Product & Pricing Strategy to Sustain Competitiveness In The Retail Marketplace!”, the analysts highlight the company’s strong performance in the first quarter of fiscal 2025. Five Below exceeded financial expectations with total sales soaring by 19.5% to $970.5 million. This growth was driven by a 7.1% increase in comparable sales and a 6.2% rise in transactions, attributed to successful product strategies, enhanced in-store experiences, and effective marketing campaigns.
Furthermore, Baptista Research also published a report titled “Five Below Inc.: Expansion of Global Sourcing Operations to Sustain Top-Line Growth!” In this analysis, the researchers recognize Five Below‘s efforts to expand its global sourcing operations as a strategy to sustain top-line growth. Despite a mixed performance in the fourth quarter and full year of fiscal 2024, the company achieved a positive milestone with total sales reaching almost $3.9 billion for the full year, marking a 10.4% year-over-year increase.
A look at Five Below Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Five Below, Inc. operates as a specialty value retailer known for its wide range of products including crafts, party supplies, candy, sports items, media, and seasonal products. With a diverse offering, the company caters to customers across the United States. Looking at the Smartkarma Smart Scores for Five Below, the company shows strengths in various areas. Its momentum score of 5 indicates strong positive trends, suggesting that the company is performing well in the market. Additionally, with scores of 3 in both value and growth, Five Below demonstrates promising potential for long-term value appreciation and expansion. Moreover, its resilience score of 3 further highlights the company’s ability to withstand challenges, adding to its positive long-term outlook.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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