Five Below late Wednesday announced an unexpected increase in fiscal third-quarter earnings as revenue surpassed analysts' estimates while the discount retailer appointed Forever 21's head as its chief executive. Adjusted per-share earnings rose to $0.42 during the three months leading up to November 2, up from $0.26 a year earlier, contrasting with Wall Street's predictions that anticipated a decline to $0.17.
Sales advanced 15% to $843.7 million, exceeding analysts' forecast of $803.9 million. In after-hours trading, shares surged 12%. Winnie Park will take on the role of CEO and board member, effective December 16. Park has been at the helm of fashion retailer Forever 21 since January 2022. For the crucial holiday quarter, Five Below projects adjusted EPS between $3.23 and $3.41, with revenue anticipated to fall between $1.35 billion and $1.38 billion.
The FactSet consensus estimates suggest a non-GAAP EPS of $3.29 and revenue of $1.36 billion. 'Our solid Black Friday weekend results marked a promising beginning to the holiday season, although the peak selling days are still ahead,' stated Ken Bull, the interim CEO who will remain as chief operating officer.
'Moreover, this year, we face five fewer shopping days between Thanksgiving and Christmas, which is reflected in our outlook.' Looking ahead, the company anticipates an adjusted EPS of $4.78 to $4.96 for the year, a revision from the previous forecast of $4.35 to $4.71. Revenue is expected to be between $3.84 billion and $3.87 billion, higher than the earlier estimates of $3.73 billion to $3.8 billion. The consensus estimates for the full year stand at an adjusted EPS of $4.59 and revenue of $3.8 billion..