Core Viewpoint - Five Below Inc. reported strong fourth-quarter earnings, leading to a rise in its share price despite mixed analyst ratings and concerns over future margins due to tariffs [1][5]. Analyst Insights JPMorgan Analysis - Analyst Matthew Boss maintained an Underweight rating with a price target of $98, noting earnings of $3.48 per share, surpassing expectations of $3.37 per share, and same-store sales of -3.0%, which was better than the consensus estimate of -3.4% [2]. - Management's guidance for 2025 adjusted earnings is projected at $4.10-$4.72 per share, which is 14% below the mid-point of Street expectations, indicating a potential operating margin contraction to approximately 7.3% [3]. Goldman Sachs Analysis - Analyst Kate McShane kept a Buy rating with a price target of $102, highlighting a 4.0% sales growth to $1.39 billion in the fourth quarter [4]. - The company anticipates significant margin headwinds from tariffs in 2025 but plans to mitigate these through pricing and vendor strategies, with consumer spending behavior remaining stable [5].

Group 1: Accenture PLC (NYSE:ACN) - Accenture stock decreased by 9.5% to $293.72, marking its lowest level since July, following a slight earnings miss in the fiscal second quarter despite a revenue beat [2] - The company raised the lower end of its full-year earnings forecast, but a 3% year-over-year decline in new bookings to $20.9 billion negatively impacted investor sentiment [2] - Year-to-date, Accenture has experienced a decline of 15.9% [2] Group 2: Five Below Inc (NASDAQ:FIVE) - Five Below stock increased by 5.7% to $79.88 after surpassing fourth-quarter earnings expectations [3] - The retailer reported a smaller-than-expected 3% decline in same-store sales, compared to analyst projections of a 3.3% drop [3] - Five Below provided strong fiscal first-quarter revenue guidance of $905 million to $925 million, exceeding the FactSet consensus estimate of $897 million [3] - Year-to-date, Five Below has a deficit of 24.1% [3] Group 3: Options Trading Activity - Options traders reacted to the earnings reports, with Accenture seeing 7,129 calls and 9,009 puts exchanged, which is 10 times its intraday average volume [4] - Five Below logged 11,000 calls and 9,698 puts, representing 16 times its usual activity [4]

Core Insights - Five Below, Inc. reported strong fourth-quarter fiscal 2024 results, with both net sales and earnings exceeding expectations, leading to a 12.6% increase in share price during after-market trading [1][2]. Financial Performance - Adjusted earnings per share for the fourth quarter were $3.48, surpassing the Zacks Consensus Estimate of $3.38, but down 0.6% from $3.65 in the previous year [3]. - Net sales reached $1,390.9 million, a 4% year-over-year increase, and also exceeded the Zacks Consensus Estimate of $1,372 million. However, comparable sales decreased by 3% year over year due to a 1.9% drop in comparable transactions and a 1% decline in the average ticket [4]. Margins and Costs - Adjusted gross profit increased by 2.1% year over year to $563.2 million, but the adjusted gross margin fell by approximately 70 basis points to 40.5%, which was above the estimated 40.3% [5]. - Selling, general and administrative (SG&A) expenses rose by 8.5% to $267 million, with SG&A as a percentage of net sales increasing by approximately 80 basis points to 19.2% [7]. - Adjusted operating income was $253.3 million, down from $268.4 million in the same quarter of fiscal 2023, with the adjusted operating margin decreasing by approximately 190 basis points to 18.2% [8]. Cash and Equity Overview - As of February 1, 2025, Five Below had cash and cash equivalents of $331.7 million and short-term investment securities of $197.1 million, with total shareholders' equity at $1.81 billion [9]. Store Expansion - The company opened 22 net new stores, bringing the total to 1,771 stores across 44 states, marking a 14.7% increase from the previous year. Plans are in place to open approximately 150 additional stores by the end of fiscal 2025 [10]. Future Outlook - For the first quarter of fiscal 2025, total sales are projected to be between $905 million and $925 million, indicating a 12.7% growth at the midpoint compared to the previous year. Approximately 50 new store openings are planned, with comparable sales expected to be flat to up 2% [12]. - For fiscal 2025, sales are anticipated to be between $4.21 billion and $4.33 billion, reflecting a 10.1% increase at the midpoint, with comparable sales projected to be flat to up 3% [15]. - Net income for fiscal 2025 is expected to range from $216 million to $250 million, with adjusted earnings per share anticipated to be between $4.10 and $4.72, down from $5.04 reported in fiscal 2024 [16].

Core Insights - Five Below reported better-than-expected fourth-quarter financial results, with adjusted earnings of $3.48 per share, surpassing estimates of $3.38 per share, and sales of $1.391 billion, exceeding expectations of $1.386 billion [1][2] - The company provided optimistic first-quarter guidance, expecting revenue between $905 million and $925 million, compared to estimates of $898.08 million, and adjusted earnings of 50 to 61 cents per share, above the estimate of 49 cents [2] - For the full year 2025, Five Below anticipates revenue of $4.21 billion to $4.33 billion, slightly above estimates of $4.27 billion, but expects adjusted earnings between $4.10 and $4.72 per share, below the estimate of $5.06 per share [3] Stock Performance - Following the earnings announcement, Five Below shares increased by 2.3%, closing at $75.59 [3] - Analysts adjusted their price targets for Five Below, with Morgan Stanley lowering its target from $120 to $110 while maintaining an Equal-Weight rating, and B of A Securities reducing its target from $88 to $75 with an Underperform rating [4]

Core Insights - Five Below has appointed a Chief Marketing Officer (CMO) to enhance product promotion and meet customers online [1] - The company is focusing on building brand awareness and expanding its social media efforts to align with changing shopping behaviors [2] - Positive results from the business reset strategy indicate attractive growth opportunities [3] Marketing Strategy - The CMO's role will involve promoting new products and enhancing customer engagement through online platforms [1][2] - Five Below aims to provide a "treasure hunt" shopping experience by keeping product assortments fresh and relevant [4] Business Reset and Performance - Since the business reset began, sales and adjusted earnings per share have exceeded the high end of guidance [5] - The reset strategy emphasizes product, value, and store experience, initiated eight months ago [2][3] Tariff Impact and Mitigation - The company is addressing challenges posed by tariffs, with 60% of its total cost of goods imported from China [5] - Mitigation initiatives include vendor collaboration, selective price adjustments, and diversification of sourcing [6]

Core Insights - Five Below exceeded analysts' expectations for both adjusted EPS and revenue in fiscal Q4 2024, reporting adjusted EPS of $3.48 against an estimate of $3.38 and revenue of $1.39 billion compared to an estimate of $1.38 billion [1] Financial Performance - Adjusted EPS for fiscal Q4 2024 was $3.48, down 4.7% from $3.65 in fiscal Q4 2023 [2] - Revenue reached $1.39 billion, a 4.0% increase from $1.34 billion in fiscal Q4 2023 [2] - Net income was $187.5 million, a decrease of 7.3% from $202.2 million in the previous year [2] - Operating income fell by 8.1% to $246.8 million compared to $268.4 million in fiscal Q4 2023 [2] Business Strategy - Five Below targets the tween and teen demographic, focusing on low-cost products and expanding its physical footprint [3] - The company opened 22 net new stores in fiscal Q4 2024, contributing to a total of 1,771 locations by the end of the fiscal year [4] - Management's strategic efforts include enhancing operational efficiency, inventory optimization, and reducing shrinkage to protect margins [6] Market Conditions - The fiscal Q4 2024 had 13 weeks compared to 14 weeks in fiscal Q4 2023, resulting in 7% fewer shopping days and contributing to declines in several metrics [5] - Comparable sales decreased by 3.0%, influenced by rising materials costs and SG&A expenses [5] Future Outlook - For fiscal 2025, Five Below projects net sales between $4.21 billion and $4.33 billion, with comparable sales expected to be flat to up 3% [7] - Diluted EPS is forecasted to be between $3.90 and $4.52, with adjusted EPS expected in the range of $4.10 to $4.72 [7] - The company plans to open approximately 150 new stores, indicating cautious optimism amid competitive pressures [7]

Five Below, Inc. (NASDAQ:FIVE) Q4 2024 Earnings Conference Call March 19, 2025 4:30 PM ET Company Participants Christiane Pelz - Vice President, Investor Relations & Treasury Winnie Park - Chief Executive Officer Ken Bull - Chief Operating Officer Kristy Chipman - Chief Financial Officer & Treasurer Conference Call Participants Kate McShane - Goldman Sachs Scot Ciccarelli - Truist Securities Michael Lasser - UBS John Heinbockel - Guggenheim Chuck Grom - Gordon Haskett Jeremy Hamblin - Craig-Hallum Capital G ...

Five Below (FIVE) came out with quarterly earnings of $3.48 per share, beating the Zacks Consensus Estimate of $3.38 per share. This compares to earnings of $3.65 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.96%. A quarter ago, it was expected that this discount retailer would post earnings of $0.16 per share when it actually produced earnings of $0.42, delivering a surprise of 162.50%.Over the last four quarters, the com ...

Financial Data and Key Metrics Changes - For the full year, sales reached nearly $3.9 billion, with a comparable sales decrease of 2.7% and adjusted EPS of $5.04 [10][28] - Total sales in Q4 increased 7.8% to $1.39 billion, while comparable sales decreased 3% due to five fewer holiday shopping days [25][27] - Adjusted net income for Q4 was $192.4 million, compared to $193.8 million last year, resulting in adjusted EPS of $3.48 [27][28] Business Line Data and Key Metrics Changes - The company opened a record 228 new stores in 2024, ending the year with 1,771 stores across the U.S. [10][11] - Adjusted gross profit for Q4 was $563.2 million, an increase of 6.2% year-over-year, while adjusted gross margin decreased by approximately 60 basis points to 40.5% [26][27] Market Data and Key Metrics Changes - The company experienced a decrease in comparable transactions of 1.9% and a 1% decrease in average ticket size [25] - Inventory at the end of the year was $659.5 million, compared to $584.6 million at the end of the previous fiscal year [29][30] Company Strategy and Development Direction - The company aims to sharpen its focus on the customer, particularly targeting kids and their parents, to build long-term relationships [14][22] - Plans include simplifying pricing, focusing on $1 to $5 price points, and enhancing the product assortment to drive customer visits [20][23] - The company is also looking to expand its footprint, with a target of 3,500 stores, and plans to densify existing markets while entering new ones like the Pacific Northwest [22][84] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer spending, noting no significant changes in customer behavior despite economic challenges [40] - The company is preparing for potential margin headwinds due to tariffs, estimating a 100 basis point impact for the full year [34][35] Other Important Information - The company is investing in marketing to enhance brand awareness and customer engagement, with a new Chief Marketing Officer appointed to lead these efforts [21][66] - Capital expenditures for fiscal 2025 are expected to be between $210 million and $230 million, reflecting new store openings and infrastructure investments [35] Q&A Session Summary Question: What is the overall health of the consumer? - Management is pleased with sales performance and sees no meaningful difference in customer spending habits compared to the past [40][41] Question: What is the expected impact of tariffs on margins? - The company anticipates about a 100 basis point impact from tariffs, with mitigation efforts including selective price adjustments and vendor negotiations [45][46] Question: How will the company regain lost margins? - Management indicated that improvements in shrink rates and operational efficiencies could help regain margins over time [57][58] Question: What is the status of new product development? - The company is excited about upcoming summer assortments, focusing on value and relevance for customers [62][63] Question: What is the plan for marketing spend? - The company aims to optimize marketing spend, focusing on efficient channels and enhancing customer engagement through social media [66]

Financial Data and Key Metrics Changes - For the full year, sales reached nearly $3.9 billion with a comparable sales decrease of 2.7% and adjusted EPS of $5.04 [10] - Total sales in Q4 increased 7.8% to $1.39 billion from $1.29 billion in the previous year, while comparable sales decreased 3% [25] - Adjusted net income for Q4 was $192.4 million compared to $193.8 million last year, resulting in adjusted EPS of $3.48 versus $3.50 last year [27][28] Business Line Data and Key Metrics Changes - The company opened a record 228 new stores across 39 states in 2024, ending the year with 1,771 stores [10][11] - Adjusted gross profit for Q4 was $563.2 million, an increase of 6.2% over the previous year, while adjusted gross margin decreased by approximately 60 basis points to 40.5% [26] - Adjusted SG&A for Q4 increased approximately 110 basis points to 22.3% due to fixed cost deleverage and higher store wages [27] Market Data and Key Metrics Changes - The company experienced a decrease in comparable transactions of 1.9% and a comp average ticket decrease of 1% [25] - The overall inventory position improved, with inventory at the end of the year at $659.5 million compared to $584.6 million at the end of the previous year [29][30] Company Strategy and Development Direction - The company aims to sharpen its focus on the customer, particularly targeting kids and their parents, to build long-term relationships [14][21] - Plans include simplifying pricing, focusing on $1 to $5 price points, and enhancing the product assortment to drive customer visits [19][22] - The company is also looking to expand its store footprint, with a target of 3,500 stores, and densifying existing markets [85] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer spending, noting no significant changes in buying habits [41] - The company is preparing for potential margin headwinds due to tariffs, estimating a 100 basis point impact for the full year [34][45] - Management is excited about the opportunities for growth and improving sales performance through operational excellence and financial discipline [7][21] Other Important Information - The company ended the year with approximately $529 million in cash and no debt, positioning itself strongly for future investments [29] - The company is actively addressing the impact of tariffs through vendor collaboration and selective price adjustments [33] Q&A Session Summary Question: Overall health of the consumer and buying habits - Management is pleased with sales performance and sees no meaningful difference in customer spending habits compared to the past [41][42] Question: Impact of tariffs on projections - The company assumes about a 100 basis point impact from tariffs for the full year, with mitigation efforts including selective price adjustments and vendor negotiations [45][46] Question: Margin recovery and pricing adjustments - Management is focused on ensuring value in products priced at $5 and below, with adjustments being made carefully [55][56] Question: New product development and marketing spend - The company is excited about new product assortments for summer and is optimizing marketing spend to ensure efficiency [63][66] Question: Evaluation of FiveBeyond and shrink rates - Management sees opportunities in the FiveBeyond section and is focused on reducing shrink rates, which have increased by about 100 basis points since 2019 [68][72]