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Five Below (FIVE) Posts Stellar Holiday Sales, Stock Rises
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Five Below, Inc. (FIVE - Free Report) posted sturdy holiday sales results despite a challenging retail landscape. The company efficiently managed the product flow and remained proactive in meeting consumer demand. Following an upbeat performance, management now expects fourth-quarter and fiscal-year results near the high end of the previously provided guidance ranges.
Undoubtedly, the company’s focus on providing trend-right products, strengthening digital capabilities and delivering better WOW products bodes well. These factors, combined with its pricing strategy, enable Five Below to cater to demographic shoppers and resonate with value-seeking customers.
Shares of Five Below rose 5.5% during the trading session on Jan 9, 2022.
A Closer Look at Holiday Sales
Five Below highlighted that net sales for the Holiday Period — from Oct 30, 2022, through Jan 7, 2023 — increased 11.2% to $1,003.7 million from the $902.3 million reported in the comparable fiscal week period of 2021. Markedly, comparable sales for the holiday shopping season rose 0.9%.
Joel Anderson, president and CEO, said, “We are pleased with our holiday performance, with results in the upper end of our fourth quarter sales guidance range. We believe our diverse eight worlds and WOW merchandise offering along with increased and more targeted marketing effectively highlighted the tremendous value for our customers.”
Image Source: Zacks Investment Research
Guidance
Five Below now foresees fourth-quarter and fiscal 2022 results near the high end of its previously provided guidance range. Management earlier guided fourth-quarter fiscal 2022 net sales between $1,085 million and $1,110 million. This suggests an improvement of 11.4% at the high end of the range. The company forecast a 1% decline to a 1% increase in comparable sales.
For fiscal 2022, Five Below projected net sales in the band of $3,038 million-$3,063 million. This indicates growth of 7.5% at the high end of the range. The company anticipates comparable sales to be down 2-3%.
Coming to the bottom line, this extreme-value retailer for tweens, teens and beyond guided earnings in the range of $2.93-$3.09 per share for the final quarter and between $4.55 and $4.71 per share for the fiscal year.
Wrapping Up
Five Below’s strategic endeavors and value-oriented offerings position it well amid a price-sensitive environment. A continued improvement in the ticket and transaction metrics, disciplined cost management and a sustained focus on the long-term Triple Double vision should contribute to the company’s performance.
Five Below plans to open 200 plus stores and convert more than 400 stores to the new Five Beyond format in fiscal 2023.
Shares of this Zacks Rank #2 (Buy) company have rallied 55.7% in the past six months compared with the industry’s rise of 24.9%.
Other Stocks Looking Red Hot
Here we have highlighted three other top-ranked stocks, namely Build-A-Bear Workshop (BBW - Free Report) , Capri Holdings (CPRI - Free Report) and Ulta Beauty (ULTA - Free Report) .
The Zacks Consensus Estimate for Build-A-Bear Workshop’s current financial-year revenues and EPS suggests growth of 11.9% and 21.5%, respectively, from the year-ago reported figures. Build-A-Bear Workshop has a trailing four-quarter earnings surprise of 14.7%, on average.
Capri Holdings, a global fashion luxury group, carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 11.8%.
The Zacks Consensus Estimate for Capri Holdings’ current financial-year revenues and EPS suggests growth of 1% and 10.6%, respectively, from the year-ago reported figures. Capri Holdings has a trailing four-quarter earnings surprise of 21%, on average.
Ulta Beauty currently carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 13.8%.
The Zacks Consensus Estimate for Ulta Beauty’s current financial-year sales suggests growth of 15.7% from the year-ago period. This beauty retailer and the premier beauty destination for cosmetics, fragrance, skincare products, hair care products and salon services has a trailing four-quarter earnings surprise of 26.2%, on average.
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Five Below (FIVE) Posts Stellar Holiday Sales, Stock Rises
Five Below, Inc. (FIVE - Free Report) posted sturdy holiday sales results despite a challenging retail landscape. The company efficiently managed the product flow and remained proactive in meeting consumer demand. Following an upbeat performance, management now expects fourth-quarter and fiscal-year results near the high end of the previously provided guidance ranges.
Undoubtedly, the company’s focus on providing trend-right products, strengthening digital capabilities and delivering better WOW products bodes well. These factors, combined with its pricing strategy, enable Five Below to cater to demographic shoppers and resonate with value-seeking customers.
Shares of Five Below rose 5.5% during the trading session on Jan 9, 2022.
A Closer Look at Holiday Sales
Five Below highlighted that net sales for the Holiday Period — from Oct 30, 2022, through Jan 7, 2023 — increased 11.2% to $1,003.7 million from the $902.3 million reported in the comparable fiscal week period of 2021. Markedly, comparable sales for the holiday shopping season rose 0.9%.
Joel Anderson, president and CEO, said, “We are pleased with our holiday performance, with results in the upper end of our fourth quarter sales guidance range. We believe our diverse eight worlds and WOW merchandise offering along with increased and more targeted marketing effectively highlighted the tremendous value for our customers.”
Image Source: Zacks Investment Research
Guidance
Five Below now foresees fourth-quarter and fiscal 2022 results near the high end of its previously provided guidance range. Management earlier guided fourth-quarter fiscal 2022 net sales between $1,085 million and $1,110 million. This suggests an improvement of 11.4% at the high end of the range. The company forecast a 1% decline to a 1% increase in comparable sales.
For fiscal 2022, Five Below projected net sales in the band of $3,038 million-$3,063 million. This indicates growth of 7.5% at the high end of the range. The company anticipates comparable sales to be down 2-3%.
Coming to the bottom line, this extreme-value retailer for tweens, teens and beyond guided earnings in the range of $2.93-$3.09 per share for the final quarter and between $4.55 and $4.71 per share for the fiscal year.
Wrapping Up
Five Below’s strategic endeavors and value-oriented offerings position it well amid a price-sensitive environment. A continued improvement in the ticket and transaction metrics, disciplined cost management and a sustained focus on the long-term Triple Double vision should contribute to the company’s performance.
Five Below plans to open 200 plus stores and convert more than 400 stores to the new Five Beyond format in fiscal 2023.
Shares of this Zacks Rank #2 (Buy) company have rallied 55.7% in the past six months compared with the industry’s rise of 24.9%.
Other Stocks Looking Red Hot
Here we have highlighted three other top-ranked stocks, namely Build-A-Bear Workshop (BBW - Free Report) , Capri Holdings (CPRI - Free Report) and Ulta Beauty (ULTA - Free Report) .
Build-A-Bear Workshop, which operates as a multi-channel retailer of plush animals and related products, sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Build-A-Bear Workshop’s current financial-year revenues and EPS suggests growth of 11.9% and 21.5%, respectively, from the year-ago reported figures. Build-A-Bear Workshop has a trailing four-quarter earnings surprise of 14.7%, on average.
Capri Holdings, a global fashion luxury group, carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 11.8%.
The Zacks Consensus Estimate for Capri Holdings’ current financial-year revenues and EPS suggests growth of 1% and 10.6%, respectively, from the year-ago reported figures. Capri Holdings has a trailing four-quarter earnings surprise of 21%, on average.
Ulta Beauty currently carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 13.8%.
The Zacks Consensus Estimate for Ulta Beauty’s current financial-year sales suggests growth of 15.7% from the year-ago period. This beauty retailer and the premier beauty destination for cosmetics, fragrance, skincare products, hair care products and salon services has a trailing four-quarter earnings surprise of 26.2%, on average.