Five Below reported an earnings per share (EPS) of $0.03, missing the estimated EPS of $0.17.
The company experienced a 14.6% increase in net sales, reaching $843.71 million.
Despite opening 82 new stores, Five Below reported an operating loss of $0.6 million.
Five Below, Inc. (NASDAQ: FIVE) is a popular discount retailer targeting teens and pre-teens with a wide range of products priced typically at $5 or below. The company operates over 1,700 stores across 44 states, offering a variety of items from toys and games to beauty and tech accessories. Competitors include Dollar Tree and Dollar General, which also focus on low-cost retail.
On December 4, 2024, Five Below reported an earnings per share (EPS) of $0.03, missing the estimated EPS of $0.17. Despite this, the company experienced a 14.6% increase in net sales, reaching $843.71 million, although this was below the expected $1.36 billion. The company’s comparable sales rose by 0.6%, indicating a slight improvement in sales performance.
During the third quarter of fiscal 2024, Five Below expanded its retail presence by opening 82 new stores, increasing its total store count by 18.1% compared to the previous year. Despite this growth, the company reported an operating loss of $0.6 million, a decline from the $16.1 million operating income in the same quarter of fiscal 2023. However, adjusted operating income was $27.6 million, showing some underlying strength.
The company’s effective tax rate decreased to 23.4% from 25.4% the previous year. Five Below reported a GAAP diluted EPS of $0.03 and an adjusted diluted EPS of $0.42. The company has raised its full-year 2024 guidance, reflecting optimism for the remainder of the fiscal year, partly due to a strong Black Friday performance.
Five Below’s financial metrics include a price-to-earnings (P/E) ratio of 21.52 and a price-to-sales ratio of 1.51, indicating how the market values its earnings and sales. The enterprise value to sales ratio is 1.98, and the enterprise value to operating cash flow ratio is 17.69, highlighting the company’s valuation relative to its sales and cash flow. The debt-to-equity ratio is 1.22, and the current ratio is 1.38, suggesting a balanced approach to managing debt and liquidity.
