Five Below (NASDAQ: FIVE) stock jumped more than 11% in pre-market trading Thursday after a discount retailer released fourth-quarter results that beat Wall Street estimates.
The company reported earnings of $3.48 per share for the quarter, beating analysts’ forecasts of $3.37 per share. Revenue was $1.39 billion, slightly above the expected $1.38 billion.
Total revenue rose by 4% compared to the same quarter last year. However, comparable sales, which track performance at existing stores, declined by 3% year-over-year. The company reported an operating income of $246.8 million for the fourth quarter.
Five Below (NASDAQ: FIVE) opened 22 new stores in the fourth quarter, bringing the total number of locations to 1,771 by the end of the period. The company also reported having $331.72 million in cash and cash equivalents as the quarter ended.
“It has been a busy three months at Five Below. We are executing our key strategies around product, value, and store experience, and doing so with a sharpened focus on our core customer — the kid and the kid in all of us,” said Winnie Park, CEO of Five Below.
Looking ahead to the first quarter, Five Below forecasts revenue to range between $905 million and $925 million, topping estimates of $898.08 million. The company also expects adjusted earnings of 50 to 61 cents per share, above the consensus estimate of 49 cents.
For the full year 2025, the company forecasts revenue between $4.21 billion and $4.33 billion, compared to the consensus of $4.27 billion. Full-year adjusted earnings are expected to range from $4.10 to $4.72 per share, below analysts’ estimates of $5.06 per share.
Five Below noted that its guidance accounts for the impact of current tariffs.