Discount retailer Five Below's Q3 sales beat estimates

Overview

• Five Below Q3 net sales rise 23.1% to $1.038 bln, beating analyst expectations

• Adjusted EPS for Q3 at $0.68, up from $0.42 last year

• Company raises full-year 2025 sales and EPS outlook

Outlook

• Company expects Q4 net sales between $1.58 bln and $1.61 bln

• Five Below sees full-year net sales between $4.62 bln and $4.65 bln

• Company anticipates full-year adjusted EPS between $5.71 and $5.89

Result Drivers

• STORE EXPANSION - Co opened 49 net new stores, contributing to sales growth

• CUSTOMER STRATEGY - CEO cites execution of customer-centric strategy as key to results

• COMPARABLE SALES - 14.3% increase in comparable sales boosted overall revenue

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 12 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the department stores peer group is "buy"

• Wall Street's median 12-month price target for Five Below Inc is $170.00, about 7% above its December 2 closing price of $158.90

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release: ID:nGNX45fdtM

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)