Five Below (FIVE) Q1 Earnings: What To Expect

Kayode Omotosho /
2024/06/04 3:02 am EDT

Discount retailer Five Below (NASDAQ:FIVE) will be reporting results tomorrow afternoon. Here's what to look for.

Five Below met analysts' revenue expectations last quarter, reporting revenues of $1.34 billion, up 19.1% year on year. It was a weak quarter for the company, with revenue guidance for next quarter missing analysts' expectations.

Is Five Below a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Five Below's revenue to grow 14.9% year on year to $834.6 million, improving from the 13.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.63 per share.

Five Below Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Five Below has missed Wall Street's revenue estimates five times over the last two years.

Looking at Five Below's peers in the discount retailer segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Burlington delivered year-on-year revenue growth of 10.5%, meeting analysts' expectations, and Ross Stores reported revenues up 8.1%, in line with consensus estimates. Burlington traded up 19.8% following the results while Ross Stores was also up 7.8%.

Read our full analysis of Burlington's results here and Ross Stores's results here.

There has been positive sentiment among investors in the discount retailer segment, with share prices up 11.5% on average over the last month. Five Below is down 3% during the same time and is heading into earnings with an average analyst price target of $203.1 (compared to the current share price of $141.6).

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