Discount retailer Five Below (NASDAQ: FIVE) will be announcing earnings results this Wednesday after market hours. Here’s what you need to know.
Five Below beat analysts’ revenue expectations last quarter, reporting revenues of $1.29 billion, up 32.5% year on year. It was an exceptional quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Is Five Below a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Five Below’s revenue to grow 18.4% year on year, slowing from the 23.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Five Below has a history of exceeding Wall Street’s expectations.
Looking at Five Below’s peers in the discount retailer segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Ross Stores delivered year-on-year revenue growth of 13.3%, beating analysts’ expectations by 1.8%, and Burlington reported revenues up 11%, falling short of estimates by 0.8%. Ross Stores traded up 4.4% following the results while Burlington was down 13.1%.
Read our full analysis of Ross Stores’s results here and Burlington’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the discount retailer stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.2% on average over the last month. Five Below is up 14.1% during the same time and is heading into earnings with an average analyst price target of $273.43 (compared to the current share price of $247.16).
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