Five Below Inc. (FIVE) dropped some impressive numbers after Wednesday's market close, delivering third-quarter results that left analyst estimates in the dust.
The Numbers Tell a Story
The discount retailer posted third-quarter revenue of $1.04 billion, crushing estimates of $983.07 million. Even more striking, adjusted earnings came in at 68 cents per share versus expectations of just 24 cents per share. That's not a beat—that's a blowout.
Net sales grew 23.1% year-over-year while comparable sales surged 14.3%. The company added 49 net new stores during the quarter, bringing its total footprint to 1,907 locations nationwide.
"We are thrilled to report third quarter results that surpassed our expectations, marking our second consecutive quarter of over $1 billion in sales and robust double-digit same-store sales growth," said CEO Winnie Park.
Park credited the performance to what she calls the company's customer-centric strategy: "delivering trend-right merchandise at exceptional value, connecting with our customers through compelling marketing campaigns, and creating amazing shopping experiences that truly resonate."
Looking Ahead: Strong Guidance
Five Below guided fourth-quarter revenue to $1.58 billion to $1.61 billion with adjusted earnings of $3.36 to $3.54 per share. Analysts had been expecting revenue of $1.56 billion and earnings of $3.10 per share.
The real headline came with the full-year guidance boost. The company raised its revenue outlook from $4.44-$4.52 billion to $4.63-$4.65 billion, compared to analyst estimates of $4.57 billion. Full-year adjusted earnings guidance jumped from $4.76-$5.16 per share to $5.71-$5.89 per share versus estimates of $5.18 per share.
The company noted its outlook incorporates the expected impact of tariffs currently in place, showing management isn't ignoring potential headwinds.
"As we head into the holiday season, we are well-positioned to delight our customers with unique gifts and stocking stuffers at incredible value in a fun shopping environment," Park added.
Market Reaction
Five Below shares jumped 3.86% in after-hours trading to $169.44, pushing past the stock's previous 52-week high of $168.98. The company's management team discussed the quarter on an earnings call that kicked off at 4:30 p.m. ET.
