Five Below Inc. (NASDAQ: FIVE) reported late on Wednesday that it swung into a profit in its fiscal first quarter, driven by more than 30% revenue growth.
The Philadelphia, Pennsylvania-based Company, which went public last July, sells goods such as toys, Candy, jewelry, accessories etc for $5 or less.
For the fiscal first quarter ended May 4, Five Below reported a profit of $1.6 million or 3 cents a share compared to a loss of $1.2 million or 32 cents a share, in the same quarter of last year.
Sales surged 33% to $95.6 million from $71.8 million, in the year earlier quarter.
Comparable-store sales, a key gauge on retail chain’s performance as it includes the sales figures from only those stores that were opened for at least 12 months thereby setting aside erratic sales from those stores that were opened (shuttered) less 12 month ago, rose 4.2%.
Stripping out onetime items, non-GAAP earnings stood at 5 cents a share.
Analysts’ consensus estimate was for earnings of 4 cents a share on revenue of $93.9 million, according to a data compiled by FactSet.
Speaking to analysts during a conference call, Company’s President and CEO Thomas Vellios said that the results matched management’s own expectations.
“As we said a few weeks ago, once the headwinds facing consumers abated mid-quarter, we saw a strengthening in our traffic and sales patterns as our trend-right merchandise at extremely compelling prices resonated with our customers,” said Vellios in a conference call.
For the current quarter, Five Below expects earnings of 5 cents to 6 cents a share and non-GAAP earnings of 8 cents to 9 cents a share, on assumption that sales would come between $112 million and $114 million. Analysts’ consensus estimate was for earnings off 8 cents a share on sales of $109.6 million.
For the full fiscal year, the Company anticipates earnings to be in the range of 65 cents to 68 cents a share on sales of $524 million to $529 million. Analysts, on average, were expecting earnings of 66 cents a share on sales of $530 million.
During the quarter, the Company opened new stores and intends to open another 60 stores by the end of this year, the Company said.
Shares climbed almost 4% in afterhours trading.
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