Five Below Results Tops Street; Stock Up - Update

(RTTNews) - Specialty retailer Five Below Inc (FIVE), Tuesday reported a better-than-expected increase in fourth-quarter profit, on the back of a 22 percent jump in sales, with both earnings and sales topping Wall Street estimates.

The retailer came detailed some strong guidance, sending its shares soaring 15.5 percent in after-hours trade on the Nasdaq.

"Despite the adverse weather impact during the most important shopping weeks of the year, we are pleased to have ended the fourth quarter with improving trends," said CEO Thomas Vellios.

Five Below's results show strength as the company earlier warned of weak results due to harsh winter weather and a shortened holiday season. The company operates as a discount retailer, offering teens and pre-teen shoppers, products from headphones to fashion accessories to candy, all priced at $5 or below.

The Philadelphia, Pennsylvania-based retailer posted fourth-quarter net income to stockholders of $24.5 million or $0.45 per share, compared with $18.7 million or $0.35 per share last year.

Excluding items, adjusted earnings for the quarter were $25.8 million or $0.47 per share, compared with $21.4 million or $0.39 per share a year ago. On average, 14 analysts polled by Thomson Reuters expected earnings of $0.45 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter jumped to $212 million from $173.6 million in the prior year. Fourteen analysts had a consensus revenue estimate of $207.79 million for the quarter.

On a same-store basis, sales for the quarter were up 0.3 percent.

The company ended the quarter with 304 stores. In 2014, it plans to open 62 stores across new markets including Houston and the state of Tennessee.

For the first quarter, Five Below expects net earnings of $0.04 to $0.05 per share, adjusted earnings of $0.05 to $0.06 per share and sales of $120 million to $122 million. Analysts currently expect earnings of $0.06 per share on sales of $120.24 million.

For fiscal year 2014, the company expects net earnings of $0.85 to $0.88 per share, adjusted earnings of $0.86 to $0.89 per share and sales of $672 million to $678 million. Analysts currently expect earnings of $0.87 per share on sales of $673.37 million.

Five Below closed Tuesday's regular trade at $38.00, down $0.19 or 0.50%, on a volume of 1.8 million shares on the Nasdaq. In after hours, the stock gained $5.90 or 15.53% at $43.90.