Five Below Profit Rises, Outlook Strong; Shares Up 7%

(RTTNews) - Discount retailer Five Below Inc (FIVE), Wednesday said its first-quarter profit increased from a year ago, driven largely by a 22 percent jump in sales, with both earnings and revenues coming in ahead of Wall Street estimates.

Five Below detailed a strong outlook for the second quarter and lifted its full year 2015 guidance, sending its shares up a near 8 percent in after-hours trade on the Nasdaq.

Philadelphia, Pennsylvania-based Five Below's first-quarter profit rose to $4.3 million or $0.08 per share from $3.1 million or $0.06 per share last year. Analysts polled by Thomson Reuters estimated earnings of $0.07 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter jumped 22 percent to $153.7 million from $126.0 million last year. Analysts had a consensus revenue estimate of $151.3 million for the quarter.

On a same-store basis, sales for the quarter increased 1.7 percent in the quarter. The company opened 19 new stores and ended the quarter with 385 stores, up 19 percent from previous quarter.

CEO Joel Anderson said, "We are pleased with our first quarter results. Continued strength in new store performance drove the sales and earnings upside versus our guidance, reinforcing our excitement and confidence in the store growth potential for this brand

Looking forward to the second quarter, the company expects earnings of $0.12 to $0.13 per share on revenues of $182 million to $185 million. Analysts currently expects earnings of $0.12 per share on revenues of $182.3 million for the quarter.

For the full year 2015, the company now sees earnings of $1.03 to $1.06 per share on revenues of $820 million to $828 million. Analysts currently expect earnings of $1.04 per share on revenues of $822.2 million for the year.

Earlier, Five Below expected earnings of $1.02 to $1.05 per share on revenues of $816 million to $824 million for 2015.

"As we look ahead, our number one priority remains store growth. We are on track to open 70 stores and enter six new states in 2015, and we are also making good progress on our planned 85 openings for 2016," Anderson said.

FIVE closed Wednesday's trading at $35.10, up $0.84 or 2.45%. The stock further gained $2.50 or 7.12% in the after-hours trading.