Five Below Beats Q4 Estimate But Outlook Disappoints (FIVE)
Discount retailer Five Below Inc. (NASDAQ: FIVE) reported late last evening that its fiscal fourth-quarter profit jumped 55% thanks to robust growth in same-store-sales, overshadowing lower margin.
However, shares almost 7% in afterhours trading as the Company provided downbeat outlook for the current fiscal year.
For the current fiscal year, the Philadelphia, Pennsylvania-based Company which focuses on teen and preteen shoppers selling merchandises below $5, expects non-GAAP earnings to come in the range of 62 cents to 65 cents a share on sales of $516 million to $521 million. Analysts’ consensus estimate was for earnings of 71 cents a share on revenue of $533 million, according to a data compiled by Thomson Reuters.
For the recently concluded quarter, Five Below anticipates earnings to be 2 cents to 3 cents on revenue of $92 million to $94 million compared to analysts’ consensus forecast of 5 cents a share on revenue of $94 million.
Comparable-store sales are anticipated to increase by 4% both for the fiscal first quarter and full fiscal.
For the fiscal fourth quarter ended Feb 2, the Company reported a profit of $19.2 million or 35 cents a share compared to a profit of $12.4 million or 17 cents a share, in the same quarter of last year. Stripping out onetime items such as dividend payments, adjusted earnings came at 39 cents a share up from 31 cents a share. Comparable-stores-sales climbed 4.4%.
Net sales during the period leaped 38% to $173.6 million. Analysts were expecting earnings of 38 cents a share on sales of $170 million.
Earlier in January the Company had provided guidance for earnings of 36 cents to 38 cents a share on sales of $169 million to $172 million.
Gross margin shrank to 41% in the fiscal fourth quarter from 41.2% in the same period of last year.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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