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Five Below (FIVE) to Post Q3 Earnings: A Peek Into Comps
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Market watchers are eagerly awaiting Five Below, Inc.’s (FIVE - Free Report) third-quarter fiscal 2023 results, scheduled to be reported on Nov 29 after the closing bell. This time, too, investors’ focus will center around comparable store sales, the key metric to gauge the company’s performance.
Insights Into Comparable Sales
Before delving into the third-quarter scenario, let's revisit the second quarter.
The second quarter showcased Five Below's commendable performance, reporting sales growth of 13.5% to $759 million. Of particular interest was the noteworthy 2.7% uptick in comparable sales — a testament to the brand's resilience and consumer appeal. This growth was propelled by a robust 4.5% increase in comp transactions. Five Below has adeptly curated its offerings to align with consumer preferences.
Despite acknowledging macroeconomic pressures and higher-than-anticipated shrink levels, Five Below is well-positioned to capitalize on its robust product lineup. The company's emphasis on offering current and in-demand products, enhancing supply-chain efficiency, bolstering digital infrastructure and expanding its physical store presence positions it for success.
We believe the higher penetration of Five Beyond and the e-commerce business, new customer acquisitions, the sales lift from remodels and conversions and selective merchandise price increases to counter inflation are likely to have favorably impacted the company’s sales. We expect third-quarter comparable sales to be up 1%, in sync with the company’s guided range of flat to 2% growth in the metric.
Five Below, Inc. Price, Consensus and EPS Surprise
The Zacks Consensus Estimate for revenues stands at $726.9 million, suggesting an improvement of 12.7% from the prior-year reported figure. Although the Zacks Consensus Estimate for third-quarter earnings per share has risen by a penny to 23 cents in the past 30 days, the figure still suggests a decline from 29 cents reported in the year-ago period.
Our proven model predicts an earnings beat for Five Below this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Five Below has an Earnings ESP of +5.22% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 More Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +3.05% and a Zacks Rank #3. The company is likely to register a bottom-line decline when it reports third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $1.01 suggests a drop from $1.20 reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar Tree’s top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $7.40 billion, which indicates a rise of 6.6% from the figure reported in the prior-year quarter. Dollar Tree has a trailing four-quarter earnings surprise of 1%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +5.23% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.44 suggests a rise of 11% from the year-ago reported number.
Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $57.65 billion, which calls for an increase of 5.9% from the prior-year quarter. COST has a trailing four-quarter earnings surprise of 2.1%, on average.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.19% and a Zacks Rank of 3. The company is likely to register a bottom-line increase when it reports third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $2.27 suggests a rise from $2.00 reported in the year-ago quarter.
lululemon’s top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.19 billion, which indicates a rise of 17.8% from the figure reported in the prior-year quarter. lululemon has a trailing four-quarter earnings surprise of 6.8%, on average.
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Five Below (FIVE) to Post Q3 Earnings: A Peek Into Comps
Market watchers are eagerly awaiting Five Below, Inc.’s (FIVE - Free Report) third-quarter fiscal 2023 results, scheduled to be reported on Nov 29 after the closing bell. This time, too, investors’ focus will center around comparable store sales, the key metric to gauge the company’s performance.
Insights Into Comparable Sales
Before delving into the third-quarter scenario, let's revisit the second quarter.
The second quarter showcased Five Below's commendable performance, reporting sales growth of 13.5% to $759 million. Of particular interest was the noteworthy 2.7% uptick in comparable sales — a testament to the brand's resilience and consumer appeal. This growth was propelled by a robust 4.5% increase in comp transactions. Five Below has adeptly curated its offerings to align with consumer preferences.
Despite acknowledging macroeconomic pressures and higher-than-anticipated shrink levels, Five Below is well-positioned to capitalize on its robust product lineup. The company's emphasis on offering current and in-demand products, enhancing supply-chain efficiency, bolstering digital infrastructure and expanding its physical store presence positions it for success.
We believe the higher penetration of Five Beyond and the e-commerce business, new customer acquisitions, the sales lift from remodels and conversions and selective merchandise price increases to counter inflation are likely to have favorably impacted the company’s sales. We expect third-quarter comparable sales to be up 1%, in sync with the company’s guided range of flat to 2% growth in the metric.
Five Below, Inc. Price, Consensus and EPS Surprise
Five Below, Inc. price-consensus-eps-surprise-chart | Five Below, Inc. Quote
How Are Estimates Shaping Up?
The Zacks Consensus Estimate for revenues stands at $726.9 million, suggesting an improvement of 12.7% from the prior-year reported figure. Although the Zacks Consensus Estimate for third-quarter earnings per share has risen by a penny to 23 cents in the past 30 days, the figure still suggests a decline from 29 cents reported in the year-ago period.
Our proven model predicts an earnings beat for Five Below this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Five Below has an Earnings ESP of +5.22% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 More Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +3.05% and a Zacks Rank #3. The company is likely to register a bottom-line decline when it reports third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $1.01 suggests a drop from $1.20 reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar Tree’s top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $7.40 billion, which indicates a rise of 6.6% from the figure reported in the prior-year quarter. Dollar Tree has a trailing four-quarter earnings surprise of 1%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +5.23% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.44 suggests a rise of 11% from the year-ago reported number.
Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $57.65 billion, which calls for an increase of 5.9% from the prior-year quarter. COST has a trailing four-quarter earnings surprise of 2.1%, on average.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.19% and a Zacks Rank of 3. The company is likely to register a bottom-line increase when it reports third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $2.27 suggests a rise from $2.00 reported in the year-ago quarter.
lululemon’s top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.19 billion, which indicates a rise of 17.8% from the figure reported in the prior-year quarter. lululemon has a trailing four-quarter earnings surprise of 6.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.