Five Below (FIVE) Q3 2024 Earnings
GAAP EPS of $0.03 includes a $21.2 million non-recurring inventory write-off ($0.29/share impact), $4.9 million in retention awards related to CEO transition ($0.07/share), $1.5 million in cost-optimization charges ($0.02/share), and $0.5 million non-recurring asset disposal ($0.01/share), all net of tax.
How Did FIVE Stock React to Q3 2024 Earnings?
S&P 500 over the same 30 days: −2.83%.
Did FIVE Beat Earnings? Q3 2024 Results
Yes. Five Below reported Q3 2024 earnings of $0.42 a share on Dec 4, 2024, beating the $0.18 consensus estimate by 137.3%. Revenue was $843.7M against a $801.0M estimate.
Five Below delivered a stronger-than-expected third quarter, with adjusted diluted EPS of $0.42 coming in well above the $0.18 consensus estimate, a beat of 137.29%, as improved merchandise performance and robust new store productivity drove results past the company's own outlook. Net sales climbed 14.6% year-over-year to $843.71 million, ahead of the $800.98 million analysts had projected, with a 0.6% comparable sales increase marking a sequential improvement from the negative comp trend of the prior quarter. The company opened a record 82 new stores during the period, ending with 1,749 locations across 44 states. GAAP results were weighed down by $28.17 million in aggregate non-recurring charges, including a $21.21 million inventory write-off and costs tied to a CEO transition, though Five Below simultaneously named Winnie Park as its new chief executive effective December 16, with shares rising on an upbeat outlook and positive early holiday signals. For the full year, management raised guidance to net sales of $3.84 billion to $3.87 billion, with adjusted diluted EPS expected between $4.78 and $4.96.
- 14.6% net sales increase driven by 18.1% store count growth and 0.6% comparable sales increase
- Stronger performance across a broader group of merchandise worlds compared to Q2
- Improved operational execution and positive results from newness and value initiatives in key categories
- Record 82 new store openings with new store performance surpassing expectations
“We are pleased to report third quarter results that exceeded our outlook. We delivered stronger performance across a broader group of our merchandise worlds compared to the second quarter and improved our operational execution. We were encouraged to see the positive results from the initiatives we undertook to add newness and deliver value in key categories. We opened a record 82 new stores during this period with new store performance also surpassing our expectations. Our merchant and operational teams across the organization are focused on our key priorities of product, value and store experience, and I want to thank them for their efforts in delivering these results.”
Five Below CEO, on the earnings call
What Was Five Below's Outlook in Q3 2024?
For Q4 fiscal 2024, Five Below expects net sales of $1.35 billion to $1.38 billion, with comparable sales declining approximately 3% to 5%, partly due to five fewer shopping days between Thanksgiving and Christmas. Adjusted diluted EPS is expected at $3.23 to $3.41. For full year fiscal 2024, net sales are expected at $3.84 billion to $3.87 billion based on approximately 227 net new stores, with comparable sales declining approximately 3%. Full-year adjusted diluted EPS is guided at $4.78 to $4.96. Gross capital expenditures are expected at approximately $340 million.
FIVE YoY Financials
| Metric | Q3 2024 | Q3 2023 | Year over year |
|---|---|---|---|
| Revenue | $843.7M | $736.4M | +14.6% |
| Gross Profit | $258.0M | $222.8M | +15.8% |
| Net Income | $1.7M | $14.6M | −88.4% |
Figures from SEC filings and company reports. Not investment advice.