Five Below (NASDAQ:FIVE) news for Monday concerning results from its holiday sales period have FIVE taking a beating.
A Five Below news release reveals that the company saw net sales of $596.6 million during the holiday period ending on Jan 4, 2020. That’s a 13.40% increase over its net sales of $526.10 million from the same time last year. Unfortunately for FIVE stock, comparable holiday sales were down by 2.60%.
Joel Anderson, President and CEO of Five Below, has this to say about the holiday sales results.
“While our comparable sales during key holiday selling periods were positive, they were not strong enough to overcome the headwind of six fewer shopping days between Thanksgiving and Christmas, and overall sales did not meet our expectations. Despite the sales shortfall, strong inventory management and disciplined cost control has us on track to end the quarter with gross margin in line with our expectations and to deliver earnings per share near the low end of our previous guidance range.”
The Five Below news release includes updates for the company’s fourth-quarter outlook. It now expects earnings per share of $1.93 to $1.96 on revenue of $685 million to $688 million. That doesn’t compare well to Wall Street’s estimates of $2.02 per share and $728.79 million in revenue.
Five Below’s guidance for the full year of 2019 has EPS coming in between $3.07 and $3.10 on revenue of $1.845 billion to $1.848 billion. Analysts are estimating per-share earnings of $3.17 and revenue of $1.89 billion for the period.
FIVE stock was down 11.36% when markets closed on Monday.
As of this writing, William White did not hold a position in any of the aforementioned securities.