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Q4 Looking Up At Five Below

Monday January 21st, 2013 - 11:28AM


Five Below, Inc. has updated fourth quarter sales and earnings guidance based on quarter-to-date results for the period from October 28, 2012 through January 12, 2013. It announced that total sales for the 11-week period increased 34% to $158.5 million, while comparable store sales for the period increased 4.2%.

Thomas Vellios, co-founder, president and CEO, stated, "Though our sales results for the quarter-to-date time period were impacted by the effects of Hurricane Sandy in the month of November, we saw improved trends in December and January, and believe that customers responded favorably to our compelling merchandise offering and value price points during the key holiday selling season."

Vellios added, "We are pleased with the overall performance of our fiscal 2012 class of stores. Additionally, fiscal 2013, for which we have planned 60 new stores, will be off to an exciting start with our initial entry into the Texas market, including the Dallas and Austin metropolitan areas."

The outlook for full fourth quarter net sales is a range of $169 million to $172 million, Five Below said, with the total based on the opening of one new store and an expected 4% increase in comparable store sales. The new figures compare to prior guidance for net sales in the range of $167 million to $170 million. The company still expects GAAP net income to be in the range of $18 million to $19 million, it said, with a GAAP diluted income per common share range of 34 cents to 36 cents on 53 million estimated diluted weighted average common shares outstanding.

GAAP net income and EPS guidance include $900,000 in expenses related to a pending secondary public offering, the company pointed out, and $900,000 in tax-effected expenses related to the founders' transaction. Together, those expenses represent three cents per adjusted diluted share. So, the company said it expects adjusted net income to come in at $20 million to $21 million, or 36 cents to 38 cents per diluted share based on estimated adjusted diluted weighted average common shares outstanding of 54.4 million. The latest numbers compare to prior guidance for adjusted net income in the $19 million to $20 million range, or 35 cents to 37 cents per diluted share, also based on the estimated adjusted diluted weighted average common shares outstanding of 54.4 million.