Five Below (NASDAQ:FIVE) saw its shares tumble more than 13% following the closing bell on Wednesday after the chain of specialty discount stores reported fiscal Q4 earnings and revenue that missed analysts' expectations.
The company’s guidance also fell short.
For FQ4 2023, Five Below reported earnings per share (EPS) of $3.65, short of the consensus estimates of $3.78. The company's revenue for the quarter was reported at $1.34 billion, slightly below the analyst projection of $1.35 billion.
Looking ahead, Five Below provided its financial outlook for both the first quarter and the full year of 2025.
For the first quarter, it anticipates an EPS in the range of $0.58 to $0.69, missing the analyst consensus of $0.76. Revenue expectations for the same period are set between $826 million and $846 million, also short of the $852 million expected by analysts.
For the full fiscal year of 2025, Five Below projects an EPS between $5.71 and $6.22, which again is lower than the consensus estimate of $6.47. Revenue is estimated to range between $3.97 billion and $4.07 billion, falling short of the expected $4.11 billion by market analysts.
"Holiday 2023 marked a strong end to the year for sales performance as our amazing assortment of Wow product drove yet another quarter of comp transaction growth, led by the Five Beyond format stores,” said Joel Anderson, President and CEO of Five Below.
“We have implemented additional shrink mitigation initiatives based on our 2023 learnings. However, we expect the resulting benefits to take some time to realize, and therefore, we have not included any associated improvement in our outlook this year,” he added.