Five Below (NASDAQ:FIVE) stock is falling on Thursday following the release of the retail company’s earnings report for the fourth quarter of 2023.
The bad news for Five Below starts with its earnings per share of $3.65 in Q4. That’s worse than Wall Street’s estimate of $3.78 for the quarter. However, it was up year-over-year compared to $3.07 per share.
Another blow to FIVE stock comes from its revenue of $1.34 billion. That’s another miss compared to analysts’ revenue estimate of $1.35 billion, even if it’s up 19.1% compared to $1.12 billion in the same period of the year prior.
Five Below president and CEO Joel Anderson said the following in the earnings report:
“The benefit of strong sales performance to our profitability was offset by higher than anticipated shrink headwinds, resulting in earnings at the low end of our guidance range. We have implemented additional shrink mitigation initiatives based on our 2023 learnings. However, we expect the resulting benefits to take some time to realize, and therefore, we have not included any associated improvement in our outlook this year.”
Guidance Hits FIVE Stock
The first quarter of 2024 isn’t looking good for the budget retailer. The company’s outlook includes EPS of 58 cents to 59 cents alongside revenue of $826 million to $846 million. Wall Street’s estimates are for EPS of 76 cents and revenue of $851.96 million.
The company’s full-year 2024 guidance includes EPS of $5.71 to $6.22 on revenue of $3.97 billion to $4.07 billion. Analysts estimate that EPS will be $6.47 and revenue will be $4.11 billion for the year.
FIVE stock is down 12.4% as of Thursday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
