Five Below stock drops pre

In pre-market trading on Foreign Exchange Trading Platform Formal platformThursday, Five Below's stock dropped significantly after the company reported first-quarter earnings below expectations and lowered its profit guidance for fiscal year 2024.

The discount store chain reported first-quarter earnings per share (EPS) of $0.60, which fell short of analysts' expectations of $0.63. Quarterly revenue was $811.9 million, also below the forecasted $835.01 million.

Comparable sales decreased by 2.3%, whereas analysts had anticipated a growth of 1.42%.

The stock plummeted more than 16% in pre-market trading.

Five Below expects second-quarter EPS for 2024 to range between $0.57 and $0.69, significantly below the forecasted $0.99. Revenue is projected to be between $830 million and $850 million, also lower than the expected $883 million.

For fiscal year 2024, Five Below anticipates EPS to range from $5.00 to $5.40, down from the previous estimate of $5.71 to $6.22, and below analysts' expectations of $6.00. Revenue for 2024 is expected to be between $3.79 billion and $3.87 billion, lower than the previous forecast of $3.97 billion to $4.07 billion. Analysts had predicted $4.03 billion.

Capital expenditures for fiscal year 2024 are expected to be approximately $345 million to $355 million.

In an earnings report, Goldman Sachs analysts stated: “Based on FIVE’s soft same-store sales, we believe the pressure on low-income consumers may be greater than we initially anticipated.”

“However, despite short-term headwinds, we maintain a buy rating as FIVE’s long-term growth prospects remain intact. If recent pricing and marketing tests prove successful, there could be potential upside in demand in the latter half of the year,” they added.

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

Very good!（5759）