Five Below (FIVE) Holiday Sales Rise, Eyes Solid Finish to FY23
Five Below, Inc. FIVE has showcased a stellar performance during the holiday season, underscoring the exceptional ability to connect with consumers looking for affordable and trendy products. This high-growth value retailer posted a stellar 15.6% increase in net sales for the quarter-to-date period from Oct 29, 2023 through Jan 6, 2024.
Management expressed satisfaction with the broad-based strength in performance across most product categories, highlighting continued success from converted stores. Need-based categories and the Seasonal offering featuring a value-packed Wow! Assortment resonated well with customers, resulting in a 3.6% increase in comparable sales for the holiday period.
Buoyed by the stellar holiday performance, Five Below now anticipates fourth-quarter sales to land in the upper half of the previously guided range. Management expressed satisfaction at completing fiscal 2023 with a record 204 net new stores, signaling robust growth.
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Looking ahead into 2024, the company has a robust pipeline of stores and remains committed to the Triple-Double strategy. This strategy encompasses expanding stores, maximizing their potential, growing product and brand strategies, and optimizing inventory.
The company's previously provided guidance for the fourth quarter remains unchanged, with expected net sales in the range of $1.32 billion-$1.35 billion, an approximate 2% to 3% increase in comparable sales, and earnings per share in the band of $3.64-$3.80. For fiscal 2023, Five Below maintains its guidance of net sales between $3.54 billion and $3.57 billion, an approximate 2.5% increase in comparable sales, and earnings per share in the range of $5.40-$5.56.
Wrapping Up
Five Below is focusing on improving its product selection, supply chain and digital capabilities to enhance customer experience and attract more shoppers. The company's innovative approach is well-suited to adapt to consumer trends. Its robust digital marketing efforts and aggressive store expansion strategy are key to its growth.
In the past three months, shares of this Zacks Rank #3 (Hold) company have rallied 16.6% compared with the industry’s growth of 17.5%.
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Abercrombie & Fitch, an omnichannel specialty retailer of apparel and accessories for men, women and kids, sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year revenues suggests growth of 13.5% from the year-ago reported figures. Abercrombie & Fitch has a trailing four-quarter earnings surprise of 713%, on average.
Hibbett, an athletic-inspired fashion retailer, sports a Zacks Rank #1. The Zacks Consensus Estimate for Hibbett’s current fiscal sales suggests growth of 1.7% from the year-ago reported figure.
Hibbett has a trailing four-quarter earnings surprise of 24.2%, on average.
Deckers, a global leader in designing, marketing, and distributing innovative footwear, apparel and accessories, currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Deckers’ current fiscal sales and EPS calls for growth of 11.7% and 21.9%, respectively, from the year-ago reported figure. Deckers has a trailing four-quarter earnings surprise of 26.3%, on average.
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