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Five Below shares drop 7% on guidance miss

EditorRachael Rajan
Published 30/08/2023, 22:12
© Reuters.
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Five Below (NASDAQ:FIVE) shares fell more than 7% after-hours following the company’s reported Q2 results, with EPS of $0.84 coming in better than the consensus estimate of $0.83. Revenue grew 13.5% year-over-year to $759 million, slightly lower than the consensus estimate of $759.7M.

“We are pleased to deliver second quarter results in line with our guidance on the top and bottom line. Notably, the 2.7% comparable sales increase was driven by a 4.5% increase in comp transactions, illustrating the success of our Five Beyond conversion strategy and the appeal of our extreme value, WOW offering,” said CEO Joel Anderson.

Despite roughly in-line Q2 results, the company’s guidance missed the analyst expectations.

For Q3/24, the company expects EPS of $0.17-$0.25, compared to the consensus of $0.40, and revenue of $715-$730M, compared to the consensus of $737.8M.

For the full year, the company expects EPS in the range of $5.27-$5.55, compared to the consensus estimate of $5.58, and revenue in the range of $3.5-$3.57 billion, compared to the consensus estimate of $3.56B.

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