Five Below Stock Falls On Q4 Results: Here's Why

Five Below, Inc. FIVE reported its fourth-quarter financial results after the bell Wednesday. Here's a look at the print.

The Details:

Five Below reported quarterly earnings of $3.65 per share, up from $3.07 per share from the same period last year.

Quarterly revenue clocked in at $1.34 billion, up from $1.12 billion year-over-year.

The company reported it opened 63 net new stores and ended the quarter with 1,544 stores in 43 states. This represents an increase in stores of 15.2% from the end of the fourth quarter of fiscal 2022.

“Holiday 2023 marked a strong end to the year for sales performance as our amazing assortment of Wow product drove yet another quarter of comp transaction growth, led by the Five Beyond format stores. In fiscal 2023, we opened a record 205 new stores and ended the year with over half of our comparable stores in the Five Beyond format. The benefit of strong sales performance to our profitability was offset by higher than anticipated shrink headwinds, resulting in earnings at the low end of our guidance range,” said Joel Anderson, CEO of Five Below.

Outlook: 

Five Below sees first-quarter earnings of between 58 cents and 69 cents per share and revenue in the range of $826 million to $846 million, based on opening approximately 55 to 60 new stores and assuming an approximate flat to 2% increase in comparable sales.

The company expects fiscal year 2024 earnings between $5.71 and $6.22 per share and revenue in the range of $3.97 billion and $4.07 billion, versus the $3.569 billion estimate.

“We will continue to focus on driving our growth this year, supported by our five strategic pillars, delivering between 225 and 235 planned new stores, approximately 200 store conversions to the Five Beyond format and completing the expansion of two distribution centers,” said CEO Anderson.

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FIVE Price Action: According to Benzinga Pro, Five Below shares are down 12.8% after-hours at $182.20 at the time of publication.

Image: Mike Mozart from Wikimedia Commons