Five Below (NASDAQ: $FIVE), a retailer that sells products priced at $5 or less released its Q4 fiscal on March 19, after markets closed. The stock soared following the earnings beat. Here is a deep dive into the results.
Five Below Q4 FY24 Results
For the fourth quarter of fiscal 2024, Five Below reported a 4% YoY increase in revenue to $1.39 billion, beating expectations of $1.38 billion. Its adjusted EPS came in at $3.48, beating estimates of $3.38.
It opened 22 net new stores in Q4, and ended the quarter with 1,771 stores, with a presence in 44 US states, a 14.7% YoY increase from last year. Adjusted operating income declined 1.5% YoY to $253.3 million, while the adjusted net income declined 0.7% YoY to $192.4 million.
Full-Year Highlights
FY24 net sales increased 8.9% YoY to $3.88 billion, while comparable sales were down 2.7%. It opened 227 net new stores in fiscal 2024 compared to 203 new stores the previous year. Five Below reported a full-year adjusted operating income of $356.1 million, a 4.8% YoY decline, while adjusted net income declined 5.1% YoY to $277.8 million. For fiscal 2024, it bought back around $40 million worth of shares.
Q1 And FY25 Guidance
For the first quarter of fiscal 2025, Five Below expects revenue of $905 million to $925 million, beating analysts’ estimate of $897.1 million. The revenue forecast is based on opening of around 50 net new stores, and flat to 2% increase in comparable same.
Q1 adjusted net income is forecast at $28 million to $34 million, with an adjusted EPS of $0.50 to $0.61, above analysts’ estimate of $0.48.
For FY25, Five Below expects revenue of $4.21 billion to $4.33 billion, based on opening around 150 new stores and a comparable sales growth of flat to a 3% increase. The revenue forecast is slightly above analysts’ forecast of $4.25 billion at the midpoint.
Adjusted net income is forecast at $227 million to $261 million, with an adjusted EPS of $4.10 to $4.72, below analysts’ estimate of $5.04. Five Below forecast gross CapEx of $210 million to $230 million for FY25.
Five Below (FIVE) Market Performance
Following the Q4 earnings and revenue beat, FIVE shares soared 6.30% to $80.35 per share during the premarket trading session on March 20, 2025, as of 9:02 AM EDT.
Over the past 12 months, Five Below shares have dipped 63.42% as lower-income shoppers have been hard hit by higher prices. Additional pressure from larger retailers like Walmart (WMT) and Target (TGT) has also impacted Five Below.
Analysts give Five Below an overall hold rating. They forecast an average price of $100.91, which is a 33.50% upside based on Wednesdays’ closing price of $75.59. The analysts forecast a wide range of price targets, with a high of $150, and low of $75.
Is Five Below A Buy?
The recent results come amid Five Below’s December 2024 leadership change, where Winnie Park was brought on board as the CEO. Previously, Park had served as the CEO of Forever 21, whose parent company said earlier this week that it was filing for Chapter 11 bankruptcy protection and winding down its US operations.
Investors should keep a close eye on management’s operational efficiency efforts as it expands its physical footprint. The optimistic forecast and recent Q4 results signal that FIVE might be worth keeping a close eye on. However, for now, analysts’ overall rating of hold could potentially be the right move.
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