Five Below beats Q4 sales estimates

Overview

• U.S. discount retailer's Q4 sales rose 24%, beating analyst expectations

• Co reports Q4 adjusted diluted EPS of $4.31

• Q4 pretax profit beat analyst expectations

Outlook

• Five Below expects Q1 net sales of $1.18 bln to $1.20 bln, comp sales up 14%-16%

• Company sees full-year net sales of $5.20 bln to $5.30 bln, comp sales up 3%-5%

• Five Below expects fiscal 2026 gross capital expenditures of $230 mln to $250 mln

Result Drivers

• STORE EXPANSION - Co opened 14 net new stores in Q4, increasing total store count by 8.5% year-over-year

• COMPARABLE SALES GROWTH - Q4 comparable sales rose 15.4%, contributing to overall revenue increase

• CUSTOMER-CENTRIC STRATEGY - CEO cited execution of customer-focused strategy and strong new store performance as drivers of results

Company press release: ID:nGNX4f4yp8

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the department stores peer group is "buy"

• Wall Street's median 12-month price target for Five Below Inc is $222.50, about 4% above its March 17 closing price of $214.00

• The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 29 three months ago

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