Five Below Stock Dives Despite Better-Than-Expected Q1 Results

Five Below Inc (NASDAQ:FIVE) shares are moving lower in extended trading on Wednesday on the heels of the company’s first-quarter financial results. Here’s a rundown of the report.

• Five Below stock is showing notable weakness. Why is FIVE stock dropping?

Five Below Beats Q1 Estimates

Five Below posted first-quarter revenue of $1.29 billion, beating estimates of $1.22 billion, according to Benzinga Pro. The specialty retailer reported adjusted earnings of $2.22 per share, beating estimates of $1.74 per share.

Net sales were up 32.5% year-over-year as comparable sales grew by 22.7%. Five Below said it opened 49 net new stores and ended the quarter with 1,970 total stores.

“Our continued focus on compelling newness at amazing value and great store execution is at the heart of our operating flywheel. We successfully amplified social media trends and drove outsized traffic through coordinated merchandising and marketing efforts,”  said Winnie Park, CEO of Five Below.

What’s Next For Five Below?

Five Below guided for second-quarter revenue of $1.18 billion to $1.20 billion, and adjusted earnings of $1.17 to $1.29 per share. Analysts are anticipating revenue to go $1.14 billion and adjusted earnings of $1.12 per share.

The company raised its full-year revenue guidance from a range of $5.2 billion to $5.3 billion to a new range of $5.4 billion to $5.48 billion, versus estimates of $5.38 billion. Five Below also raised its full-year adjusted earnings outlook from a range of $7.74 to $8.25 per share to an updated range of $8.65 to $9.05 per share versus estimates of $8.29 per share.

Five Below's management team is currently discussing the quarter on an earnings call that started at 4:30 p.m. ET.

FIVE Shares Drop After The Bell

FIVE Price Action: Five Below shares were down 6.06% after the close on Wednesday, trading at $209.38 at publication time, according to Benzinga Pro. 

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