Five shares sank lower on the forecast, as the retailer leaned toward higher-priced goods -Dlight News

Five shares sank lower on the forecast, as the retailer leaned toward higher-priced goods

Shares of Five Below Inc. fell in after-hours trading Wednesday, after the teen-centric discount retailer offered a full-year forecast that disappointed Wall Street. Five Below, +0.17% said it expects full-year sales of $3.49 billion to $3.59 billion, with the midpoint below the FactSet forecast of $3.58 billion. Executives said they expect the company to earn between $5.25 and $5.76 per share; The midpoint of that forecast was also below the FactSet estimate for $5.65 per share. The five fell short of full-year same-store sales growth forecasts of 1% to 4%, compared with Wall Street’s forecast for a 2.8% gain. For the first quarter, Five Below said it expects sales of $723 million to $735 million and same-store sales to increase 2.5% to 4%. The same-store sales forecast was above expectations of 2.4%, but the midpoint of the sales forecast was below FactSet’s forecast of $731 million. Earnings per share forecasts fell below estimates of 69 cents, down from five-bottom earnings per share forecasts of 59 cents to 65 cents. Shares fell 3.7% after hours. Five Below sells toys, home decor, stuffed figurines and some tech items — usually priced under $5. However, the company has introduced merchandise that it sells for more than cost. The company reported earnings as other retailers cut prices on toys, following strong enthusiasm for them while pandemic restrictions were still in place, and Hasbro Inc. As HAS, +0.40% has laid off employees. Chief Executive Joel Anderson said in a statement that the chain’s inventories are in good shape. And he said the company plans to open 200 new stores during the company’s fiscal year and convert 400 stores to its new Five Beyond format, which sells items priced over $5. He also said that the chain will roll out new categories in the coming year. For the fourth quarter, Five Bellows reported net income of $171.3 million, or $3.07 per share, compared to $140.2 million, or $2.49 per share, in the company’s fiscal 2021 fourth quarter. Revenue rose 12.7% to $1.12 billion compared to $96. million in the prior year quarter. Same-store sales rose 1.9%. Analysts polled by FactSet expected earnings of $3.06 per share on revenue of $1.11 billion and same-store sales growth of 0.9%.

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