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Investing.com -- Five Below Inc (NASDAQ:FIVE) shares jumped around 5% in premarket trading Thursday after the specialty discount store chain reported better-than-expected first-quarter results and issued a solid second-quarter guidance.
The company posted adjusted earnings per share of $0.86 for Q1, surpassing the analyst consensus of $0.66. Revenue came in at $970.5 million, beating expectations of $932.86 million and representing a 19.5% increase YoY. Comparable sales rose 7.1% compared to the same quarter last year.
"Our first quarter results demonstrate the effectiveness of our strategy, grounded in trend-right product, extreme value and a fun store experience," said CEO Winnie Park. She noted broad-based strength across most merchandising categories.
For Q2, Five Below expects net sales between $975 million and $995 million, ahead of the $955 million consensus, with comparable sales growth of 7-9%, also ahead of the 5.4% growth expected by analysts.
Q2 EPS are projected to be in the range of $0.50 to $0.62, compared to the consensus estimate of $0.54.
Jefferies analysts said Q1 marks a "great rebound quarter" for Five Below.
"Q1 results show the allure of a business that has a massive real estate opportunity, no direct competitors, and execution back on track," analysts led by Randal J. Konik said in a note.
"Guidance also looks solid and likely has upside," they added.
For the full year, the company forecasts fiscal 2026 adjusted EPS of $4.25-$4.72, below the $4.75 analyst consensus.
Revenue guidance has been raised to $4.33-4.42 billion, up from $4.21-$4.33 billion, which compares to estimates of $4.37 billion. Same-store sales growth outlook was also lifted to 3-5%, up from prior guide of 0-3%.
"With the top-line raised and tariffs factored in, EPS guidance may be conservative," Jefferies analysts noted.
Five Below also announced that CFO Kristy Chipman will step down for personal reasons. COO Ken Bull will serve as interim CFO during the search for a permanent replacement.
The company opened 55 new stores in Q1, ending the quarter with 1,826 locations across 44 states.
(Luke Juricic contributed to this report.)