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Five Below (FIVE) Up 3.5% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Five Below (FIVE - Free Report) . Shares have added about 3.5% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Five Below due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Five Below, Inc. before we dive into how investors and analysts have reacted as of late.
Five Below reported impressive first-quarter fiscal 2025 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Also, net sales and earnings increased year over year. The company raised its fiscal 2025 outlook.
The company posted adjusted earnings per share of 86 cents in the fiscal first quarter, which beat the Zacks Consensus Estimate of 83 cents. Also, the figure increased 43.3% from 60 cents in the year-ago quarter.
Net sales of $970.5 million increased 19.5% year over year. Also, this metric surpassed the Zacks Consensus Estimate of $968 million. Comparable sales (comps) increased 7.1% year over year.
Insight Into Margins & Costs of Five Below
Adjusted gross profit grew 24.6% year over year to $328.4 million. We note that the adjusted gross margin increased approximately 130 basis points (bps) year over year to 33.8%.
Selling, general and administrative (SG&A) costs rose 19.1% to $226.5 million. SG&A costs, as a percentage of net sales, decreased approximately 10 bps to 23.3%.
Adjusted operating income was $59.6 million compared with $38.1 million in the first quarter of fiscal 2024. The adjusted operating margin increased approximately 140 bps to 6.1%.
Five Below’s Financial Snapshot: Cash & Equity Overview
The company ended the fiscal first quarter with cash and cash equivalents of $427.5 million and short-term investment securities of $196.5 million. Total shareholders’ equity was $1.86 billion as of May 3, 2025.
Five Below Provides Q1 Store Update
The company opened 55 net new stores and ended the quarter with 1,826 stores across 44 states. This represents a 13.8% increase in the number of stores from the end of the first quarter of fiscal 2024. The company plans to open 150 stores by the end of fiscal 2025, taking the total count to 1,921 stores.
What Lies Forward in Q2 for Five Below?
The company provided its financial expectations for the second quarter and fiscal 2025, incorporating the anticipated effects of currently imposed tariffs.
For the second quarter of fiscal 2025, the company anticipates net sales between $975 million and $995 million, whereas it reported $830.1 million in the second quarter of fiscal 2025. This projection is based on the planned opening of 30 net new stores and indicates a 7-9% increase in comparable sales.
Net income is expected to fall between $25 million and $32 million, while adjusted net income is projected between $28 million and $34 million. Net income and adjusted net income were $33 million and $29.7 million, respectively, in the year-ago period.
Earnings per share are expected to be 45-57 cents, whereas it reported 60 cents in the year-ago period. Adjusted earnings per share are projected to be 50-62 cents, whereas it reported 54 cents in the year-ago period. These projections do not take into account any potential share repurchases.
Five Below’s FY25 Outlook
The company updated its financial outlook for fiscal 2025, reflecting improved expectations in several key areas. Net sales are projected to be $4.33-$4.42 billion, an upward revision from the earlier stated $4.21-$4.33 billion. In fiscal 2024, the company reported net sales of $3.88 billion. This increase suggests stronger anticipated performance, supported by plans to open stores and an improved outlook for comparable sales growth of 3-5% compared with the prior mentioned flat to up 3%.
Net income is forecast between $223 million and $249 million, which marks an upward adjustment from the previously stated $216-$250 million. Adjusted net income remains consistent at the high end, between $235 million and $261 million, slightly raised from the earlier $227-$261 million. Net income and adjusted net income were $253.6 million and $277.8 million, respectively, in fiscal 2024.
Earnings per share are expected to be $4.04-$4.51, up from the prior mentioned $3.90-$4.52 and suggesting a decline from the $4.60 reported in fiscal 2024. Adjusted earnings per share are likely to be $4.25-$4.72 compared with the previously mentioned $4.10-$4.72, whereas it registered $5.04 in fiscal 2024. The company anticipates the gross capital expenditure between $210 million and $230 million. These investments will support store openings and ongoing upgrades to systems and infrastructure.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 8.27% due to these changes.
VGM Scores
Currently, Five Below has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Five Below has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Five Below belongs to the Zacks Retail - Miscellaneous industry. Another stock from the same industry, Dick's Sporting Goods (DKS - Free Report) , has gained 15.2% over the past month. More than a month has passed since the company reported results for the quarter ended April 2025.
Dick's reported revenues of $3.17 billion in the last reported quarter, representing a year-over-year change of +5.2%. EPS of $3.37 for the same period compares with $3.3 a year ago.
For the current quarter, Dick's is expected to post earnings of $4.29 per share, indicating a change of -1.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Dick's. Also, the stock has a VGM Score of C.
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Five Below (FIVE) Up 3.5% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Five Below (FIVE - Free Report) . Shares have added about 3.5% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Five Below due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Five Below, Inc. before we dive into how investors and analysts have reacted as of late.
Five Below Q1 Earnings Beat, Comps Increase Y/Y, FY25 View Raised
Five Below reported impressive first-quarter fiscal 2025 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Also, net sales and earnings increased year over year. The company raised its fiscal 2025 outlook.
The company posted adjusted earnings per share of 86 cents in the fiscal first quarter, which beat the Zacks Consensus Estimate of 83 cents. Also, the figure increased 43.3% from 60 cents in the year-ago quarter.
Net sales of $970.5 million increased 19.5% year over year. Also, this metric surpassed the Zacks Consensus Estimate of $968 million. Comparable sales (comps) increased 7.1% year over year.
Insight Into Margins & Costs of Five Below
Adjusted gross profit grew 24.6% year over year to $328.4 million. We note that the adjusted gross margin increased approximately 130 basis points (bps) year over year to 33.8%.
Selling, general and administrative (SG&A) costs rose 19.1% to $226.5 million. SG&A costs, as a percentage of net sales, decreased approximately 10 bps to 23.3%.
Adjusted operating income was $59.6 million compared with $38.1 million in the first quarter of fiscal 2024. The adjusted operating margin increased approximately 140 bps to 6.1%.
Five Below’s Financial Snapshot: Cash & Equity Overview
The company ended the fiscal first quarter with cash and cash equivalents of $427.5 million and short-term investment securities of $196.5 million. Total shareholders’ equity was $1.86 billion as of May 3, 2025.
Five Below Provides Q1 Store Update
The company opened 55 net new stores and ended the quarter with 1,826 stores across 44 states. This represents a 13.8% increase in the number of stores from the end of the first quarter of fiscal 2024. The company plans to open 150 stores by the end of fiscal 2025, taking the total count to 1,921 stores.
What Lies Forward in Q2 for Five Below?
The company provided its financial expectations for the second quarter and fiscal 2025, incorporating the anticipated effects of currently imposed tariffs.
For the second quarter of fiscal 2025, the company anticipates net sales between $975 million and $995 million, whereas it reported $830.1 million in the second quarter of fiscal 2025. This projection is based on the planned opening of 30 net new stores and indicates a 7-9% increase in comparable sales.
Net income is expected to fall between $25 million and $32 million, while adjusted net income is projected between $28 million and $34 million. Net income and adjusted net income were $33 million and $29.7 million, respectively, in the year-ago period.
Earnings per share are expected to be 45-57 cents, whereas it reported 60 cents in the year-ago period. Adjusted earnings per share are projected to be 50-62 cents, whereas it reported 54 cents in the year-ago period. These projections do not take into account any potential share repurchases.
Five Below’s FY25 Outlook
The company updated its financial outlook for fiscal 2025, reflecting improved expectations in several key areas. Net sales are projected to be $4.33-$4.42 billion, an upward revision from the earlier stated $4.21-$4.33 billion. In fiscal 2024, the company reported net sales of $3.88 billion. This increase suggests stronger anticipated performance, supported by plans to open stores and an improved outlook for comparable sales growth of 3-5% compared with the prior mentioned flat to up 3%.
Net income is forecast between $223 million and $249 million, which marks an upward adjustment from the previously stated $216-$250 million. Adjusted net income remains consistent at the high end, between $235 million and $261 million, slightly raised from the earlier $227-$261 million. Net income and adjusted net income were $253.6 million and $277.8 million, respectively, in fiscal 2024.
Earnings per share are expected to be $4.04-$4.51, up from the prior mentioned $3.90-$4.52 and suggesting a decline from the $4.60 reported in fiscal 2024. Adjusted earnings per share are likely to be $4.25-$4.72 compared with the previously mentioned $4.10-$4.72, whereas it registered $5.04 in fiscal 2024. The company anticipates the gross capital expenditure between $210 million and $230 million. These investments will support store openings and ongoing upgrades to systems and infrastructure.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 8.27% due to these changes.
VGM Scores
Currently, Five Below has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Five Below has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Five Below belongs to the Zacks Retail - Miscellaneous industry. Another stock from the same industry, Dick's Sporting Goods (DKS - Free Report) , has gained 15.2% over the past month. More than a month has passed since the company reported results for the quarter ended April 2025.
Dick's reported revenues of $3.17 billion in the last reported quarter, representing a year-over-year change of +5.2%. EPS of $3.37 for the same period compares with $3.3 a year ago.
For the current quarter, Dick's is expected to post earnings of $4.29 per share, indicating a change of -1.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Dick's. Also, the stock has a VGM Score of C.