Monday January 13th, 2014 - 12:09PM
Five Below, Inc. has announced that net sales for the nine-week period ended January 4 increased by 25.4% to $185.3 million while comparable store sales for the period decreased by 0.5%. Based on this quarter-to-date performance, the company noted that it now expects fourth quarter sales to be in the range of $208 million to $210 million and comps to be in the range of negative 1.5% to negative 0.5%.
At the same time, Five Below stated that it expects GAAP net income to be in the range of $23.3 million to $24.3 million, with a GAAP diluted income per common share range of 43 cents to 45 cents on approximately $54 million. Excluding $900,000, or two cents per adjusted diluted share in tax-effected expenses related to a founders' transaction, the company expects adjusted net income to be approximately $24.2 million to $25.2 million, or 44 cents to 46 cents per diluted share.
Previously, Five Below maintained that it expected adjusted net income to be approximately $26.8 million to $27.9 million, or 49 cents to 51 cents per diluted share.
Thomas Vellios, Five Below co-founder and CEO, said, in comments on the financial data: "We did not meet our sales expectations for the holiday season as adverse weather negatively impacted traffic to our stores, which are heavily concentrated in the Northeast and Midwest regions. This was exacerbated by the shortened holiday season during which we simply did not make up the weather-driven sales shortfall, especially in those key shopping days just prior to Christmas. In addition, we see room for improvement within certain merchandise categories that underperformed against our expectations. While clearly disappointed with our holiday comparable store sales performance, we continue to be pleased with the performance of our new stores, in particular the performance of the new Texas market."