Shares Of Value Retailer Five Below Are On Sale After The Bell: What's Causing The Fall?

Five Below Inc FIVE shares are falling in Wednesday's after-hours session after the company reported fourth-quarter results that were largely in line with estimates and issued a weak first-quarter earnings forecast. 

The Details: Five Below reported fourth-quarter revenue of $1.12 billion, which narrowly beat consensus estimates of $1.11 billion, according to Benzinga Pro. The company's top-line results were up 12.7% compared to the fourth quarter of 2021.

Five Below reported quarterly earnings of $3.07 per share, which was in line with estimates.

The company said its "Wow" offering and "Save the Holidays" marketing campaign were particularly effective in the quarter as customers looked for value opportunities amid the inflationary environment.

"In 2023, we will build on this progress. We begin the year with a healthy inventory position and a strong, debt-free balance sheet that enable us to continue to play offense, further elevate the customer experience and execute on our multi-year growth opportunity," said Joel Anderson, president and CEO of Five Below.

Five Below expects first-quarter revenue to be between $723 million and $735 million versus estimates of $730.55 million. The company sees quarterly earnings in a range of 59 cents to 65 cents per share versus estimates of 68 cents per share.

Despite issuing downbeat first-quarter guidance, Five Below sees full-year 2023 revenue between $3.49 billion and $3.59 billion versus estimates of $3.06 billion. The company expects full-year earnings to be between $5.25 and $5.76 per share versus estimates of $4.69 per share.

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FIVE Price Action: Five Below shares were down 3.62% after the close, trading at $191 at the time of publication, according to Benzinga Pro.

Photo: Phillip Pessar from Flickr.