Five Below Stock Surges After Q3 Earnings Beat, CEO Appointment: Retail’s Extremely Bullish
Earnings per share came in at $0.42, above the $0.17 consensus estimates
FollowDiscount retailer Five Below's ($FIVE) stock was up 13% on Thursday morning after the Philadelphia-based company posted upbeat third-quarter earnings, lifting retail sentiment.
Earnings per share came in at $0.42, much above the $0.17 that Wall Street analysts were expecting.
Comparable sales increased by 0.6% in the third quarter compared to last year. Its net sales increased 14.6% to $843.7 million from $736.4 million in the same period the previous year, beating consensus estimates of $801.48 million, according to Stocktwits data.
Announcing senior management changes, Five Below also named Winnie Park Chief Executive, effective December 16. Ken Bull, COO, who has served as interim CEO, will continue as COO, while Tom Vellios will remain executive chairman.
Retail sentiment on the stock improved to 'extremely bullish' (94/100) from 'bullish' (64/100) a day ago as of 10:15 am ET. Message volumes have continued to be in the 'extremely high' zone.
“Our solid Black Friday weekend results were an encouraging start to the holiday season, though the highest-volume selling days lie ahead,” Ken Bull, interim CEO, said in a statement. “In addition, this year we have five fewer shopping days between Thanksgiving and Christmas, which is reflected in our outlook,”
For the fourth quarter, the company expects a 3% to 5% decrease in comparable sales. Its net sales are expected to be in the range of $1.35 billion to $1.38 billion based on opening about 22 new stores and the anticipated reduction in comparable sales.
Its diluted income per common share is expected to be in the range of $3.15 to $3.33
Five Below is a 'value' retailer that sells sporting goods, games, toys, tech, books, electronic accessories, and arts and crafts that are priced between $1 and $5.
Five Below stock is down 44% year-to-date.
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