The year below (NASDAQ:FIVE) shares rallied in extended trading Wednesday after earnings beat expectations and raised forecasts for the full year.
For the third quarter, $0.29 GAAP earnings per share nearly doubled analysts’ expectations while $645.03 million on sales exceeding estimates by $30.95 million. Comparable sales fell 2.7% from the third quarter of fiscal 2021. However, that was much higher than the 5.9% decline analysts had predicted.
“We delivered better Q3 results than our guidance despite a difficult macro environment and challenging year-to-year comparisons,” said Chief Executive Officer Joel Anderson. “Our performance was driven by improved ticket and transaction metrics throughout the quarter, disciplined cost management, and continued focus on our long-term Triple Double vision.”
He added that the Philadelphia-based discount chain continued to expand store locations into two new states during the quarter with even more evolving designs. A total of 40 new stores opened in the quarter with 250 stores also being updated to the new store model.
“We are continuing to play offensively, and the advancements we have made to products, experiences and supply chains, all of which will drive our holiday execution,” Anderson said. . “With the completion of our five-node distribution network, we are ready to deliver products to our growing store base even more efficiently.”
Entering the holiday sale season, management remains optimistic, raising forecasts for the key shopping season.
The company predicts holiday net sales will range from $1.09 billion to $1.11 billion against a consensus estimate of $1.08 billion. As a result, the full-year sales forecast rose from $2.97 billion to $3.02 billion from the previous forecast of $2.97 billion to $3.02 billion and well above the Street consensus. Wall is 3 billion dollars. Meanwhile, full-year diluted earnings per common share are expected to be between $2.93 and $3.09, suggesting an upside bias from the consensus of $2. 94 dollars.
Five Under’s shares rise 8.48% immediately after Earnings results have been announced.