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Five Below raises outlook, announces stock offer

The Associated Press

Five Below Inc. raised its fourth-quarter forecast Tuesday and announced plans for a public offering of its shares.

The retailer, based in Philadelphia, sells toys, candy and other products to teens and pre-teens for under $5.

Five Below said that it expects to earn 36 to 38 cents per share on an adjusted basis for the period that ended Jan. 12, versus its prior forecast of earnings between 35 and 37 cents per share.

The company said that its sales were impacted by Superstorm Sandy in November but improved in December and January to date. It forecast revenue in the range of $169 million to $172 million, up from its prior guidance of $167 million to $170 million.

Analysts polled by FactSet were expecting the company to earn 38 cents per share on revenue of $168.6 million.

Five Below also said Tuesday that some of its shareholders — including management and board members — may sell up to 8.1 million shares of the retailer's stock. The company will not receive any proceeds from the public offering, which includes 7 million shares with the option for another 1.1 million to be sold for overallotments.

The company has roughly 54 million shares outstanding.

Goldman Sachs & Co., Barclays Capital Inc., Jefferies & Company Inc. are managing the offering with Credit Suisse Securities and Deutsche Bank Securities Inc.

Five Below's shares gained 69 cents to close regular trading at $31.83, then fell 59 cents to $31.24 in after-hours trading.