Five Below Inc. (NASDAQ: FIVE) saw its stock price rise in premarket trading on Monday following the announcement of positive holiday sales results for 2024. The specialty discount store chain reported an 8.7% increase in net sales, reaching $1.19 billion for the nine-week holiday period ending January 4, 2025, compared to $1.10 billion during the same period in 2024.
Despite the overall sales growth, comparable sales for the holiday period declined by 3.2%. Executive Chairman and co-founder, Tom Vellios, attributed this to the company’s ongoing focus on enhancing product offerings, value proposition, and in-store experience. He expressed optimism about early customer responses to these strategic investments and anticipated continued progress throughout 2025.
Five Below expects fourth-quarter sales to reach the upper end of its previously issued guidance of $1.35 billion to $1.38 billion, with analysts estimating $1.382 billion. The company also reaffirmed its fourth-quarter earnings per share (EPS) guidance, projecting $3.15 to $3.33 per share, compared to the consensus estimate of $3.55. Adjusted EPS is anticipated to be between $3.23 and $3.41, with an estimate of $3.38.
Looking ahead to the full fiscal year, Five Below projects net sales between $3.84 billion and $3.87 billion, slightly below the analyst estimate of $3.876 billion. The company anticipates a comparable sales decline of approximately 3% for the year. Full-year EPS is forecasted to range from $4.34 to $4.52, while adjusted diluted EPS is expected to be between $4.78 and $4.96, compared to an estimate of $4.94.
As of Monday morning, Five Below’s stock price had risen by 1.98% in premarket trading, reaching $105.24 per share. This positive market reaction reflects investor confidence in the company’s holiday performance and its strategic initiatives for future growth. Five Below’s continued emphasis on value and customer experience positions it well within the competitive discount retail landscape.
