Five Below Q4 Earnings Surpass Estimates, Comparable Sales Dip Y/Y

Core Insights - Five Below, Inc. reported strong fourth-quarter fiscal 2024 results, with both net sales and earnings exceeding expectations, leading to a 12.6% increase in share price during after-market trading [1][2]. Financial Performance - Adjusted earnings per share for the fourth quarter were $3.48, surpassing the Zacks Consensus Estimate of$3.38, but down 0.6% from $3.65 in the previous year [3]. - Net sales reached$1,390.9 million, a 4% year-over-year increase, and also exceeded the Zacks Consensus Estimate of $1,372 million. However, comparable sales decreased by 3$563.2 million, but the adjusted gross margin fell by approximately 70 basis points to 40.5%, which was above the estimated 40.3% [5]. - Selling, general and administrative (SG&A) expenses rose by 8.5% to 267 million, with SG&A as a percentage of net sales increasing by approximately 80 basis points to 19.2% [7]. - Adjusted operating income was 253.3 million, down from $268.4 million in the same quarter of fiscal 2023, with the adjusted operating margin decreasing by approximately 190 basis points to 18.2$331.7 million and short-term investment securities of $197.1 million, with total shareholders' equity at$1.81 billion [9]. Store Expansion - The company opened 22 net new stores, bringing the total to 1,771 stores across 44 states, marking a 14.7% increase from the previous year. Plans are in place to open approximately 150 additional stores by the end of fiscal 2025 [10]. Future Outlook - For the first quarter of fiscal 2025, total sales are projected to be between $905 million and$925 million, indicating a 12.7% growth at the midpoint compared to the previous year. Approximately 50 new store openings are planned, with comparable sales expected to be flat to up 2% [12]. - For fiscal 2025, sales are anticipated to be between $4.21 billion and$4.33 billion, reflecting a 10.1% increase at the midpoint, with comparable sales projected to be flat to up 3% [15]. - Net income for fiscal 2025 is expected to range from $216 million to$250 million, with adjusted earnings per share anticipated to be between $4.10 and$4.72, down from $5.04 reported in fiscal 2024 [16].