Tuesday, 02 January 2024 12:17 GMT

Five-Below Stock Rises Over 1% After-Hours: What Caused The Surge?


(MENAFN- AsiaNet News)

Five Below shares rose 1.5% in extended trading on Wednesday, after the off-price store chain again raised its annual forecast following a strong quarterly report.

The company now expects annual revenue to be between $4.44 billion and $4.52 billion, up from its prior guidance of $4.33 billion to $4.42 billion.

It expects adjusted per-share earnings to be $4.76 to $5.16 per share, up from $4.25 to $4.72 per share. The company had raised these metrics in July.

The retailer, known for its "trendy" items priced between $1 and $5, said it simplified its product selection and rounded prices to whole numbers, which helped drive sales and foot traffic.

"Delivering extreme value, I think, has been one of our keys to success this past quarter," CEO Winnie Park said in an interview with the Wall Street Journal.

Meanwhile, revenue grew 24% to $1.03 billion in the second quarter, beating analysts' consensus estimate of $995 million. Same-store sales rose 12.4%, compared to a projection of 8.9% growth.

Park noted that back-to-school items, including backpacks, as well as toys and games, did well during the last quarter.

On Stocktwits, the retail sentiment shifted higher in the 'extremely bullish' territory, while 24-hour message volume rose from 'high' to 'extremely high.'

"$FIVE huge beat and guide, should be up 15%," a user posted.

Five Below shares are up 37.6% year-to-date, far higher than the 10.2% gains in the benchmark S & P 500 index (SPX).

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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