Value variety-store retailer Five Below reported continued strong growth in 1Q18, ended May 5:
Five Below President and CEO Joel Anderson said, “We are very pleased with the strong start to fiscal 2018, as we delivered both sales and earnings above our guidance ranges for the first quarter. Continued outperformance from our new stores and healthy comparable sales were accompanied by strong gross margin performance, SG&A leverage and tax rate favorability.”
For 2Q18, management expects net sales of $332–$335 million, supported by the opening of around 33 new stores and assuming broadly flat comparable sales. The company expects net income of $20.0–$21.2 million, equating to diluted EPS of $0.36–$0.38.
For FY18, management expects net sales of $1,502–$1,517 million, underpinned by the opening of approximately 125 new stores and assuming a 1%–2% increase in comparable sales. At the midpoint of guidance, this implies FY18 sales growth of around 18.2%. The company expects net income of $136.5–$139.9 million and diluted EPS of $2.42–$2.48.