Retailer raises full-year guidance after strong quarter but warns of inflation pressures weighing on low-income shoppers ahead.
Five Below posted first-quarter net sales of $1.29 billion, a 32.5% year-over-year increase, driven by a 22.7% rise in comparable sales. Adjusted earnings per share reached $2.22, surpassing the $1.74 estimate, while revenue beat the $1.22 billion consensus.
The company expanded its store count to 1,970 locations after adding 49 net new stores in the quarter. Full-year net sales guidance was raised to $5.40 billion-$5.48 billion from $5.2 billion-$5.3 billion, with adjusted EPS now targeted at $8.65-$9.05, up from $7.74-$8.25.
Despite the upbeat results, Five Below shares fell over 6% in after-hours trading. Executives attributed part of the quarter’s strength to temporary tax refunds and cautioned that rising fuel costs and persistent inflation may pressure consumer spending in coming months.