Why Five Below Shares Are Trading Lower Thursday

Five Below, Inc. FIVE stock is trading lower Thursday after the company reported worse-than-expected first-quarter earnings and cut guidance.

The Details: Five Below announced first-quarter earnings for fiscal-year 2024 on Wednesday after the market closed.

The specialty-value retailer reported adjusted EPS of 60 cents, missing analyst estimates of 63 cents, and sales of $811.86 million, which fell short of analyst estimates of $836.97 million. Sales were up 11.79% compared to the same period last year.

Five Below also issued guidance for the second quarter and full fiscal year. For the second quarter, the company sees adjusted EPS between 57 cents and 69 cents versus analyst estimates of 99 cents. The company expects revenue of $830 million to $850 million versus analyst estimates of $882.83 million, according to Benzinga Pro.

Five Below initially anticipated fiscal-year adjusted EPS between $5.71 and $6.22 and revenue between $3.97 and $4.07 billion. After lowering guidance, the company now expects adjusted EPS between $5.00 and $5.40 versus analyst estimates of $6. Five Below also now sees revenue of $3.79 billion to $3.87 billion versus analyst estimates of $4.03 billion.

Analyst Changes: Following the earnings report, several analysts issued price target adjustments.

• Telsey Advisory Group analyst Joseph Feldman maintained Five Below with an Outperform and lowered the price target from $220 to $155.
• Morgan Stanley analyst Simeon Gutman maintained Five Below with an Overweight and lowered the price target from $210 to $160.
• Mizuho analyst David Bellinger maintained Five Below with a Buy and lowered the price target from $215 to $150.

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FIVE Price Action: At the time of writing, Five Below stock is trading 12.8% lower at $115.57, according to data from Benzinga Pro.

Image: Mike Mozart from Wikimedia Commons