Five Below Inc (NASDAQ: FIVE) blamed higher operating costs as it reported a decline in its Q1 profit on Wednesday. Shares are down 8.0% in extended trading.
Five Below Q1 financial highlights
Earned $32.7 million in the first quarter versus year-ago figure of $49.6 million.
Per-share earnings of 59 cents were significantly below last year’s 88 cents.
Revenue went up 7.0% to $639.6 million, as per the earnings press release.
FactSet consensus was for 58 cents of EPS on $652.7 million in revenue.
Comparable sales were down 3.6% in the recent financial quarter.
According to Five Below, its inventory levels, unlike industry leaders like Target, are in good shape. The stock is down roughly 40% for the year.
Five Below lowered its full-year outlook
Shares also slipped after-hours because Five Below slashed its guidance for the full financial year. It now forecasts revenue to fall in the range of $3.04 billion to $3.12 billion on up to $5.24 of per-share earnings.
The discount retailer says its comparable sales will remain unchanged in fiscal 2022 or slip up to 2.0%. It’s aiming for 160 store openings this year. In the earnings press release, CEO Joel Anderson said:
As we look to the balance of the year, we expect macro environment to remain challenging. We know that during these times, our customer seeks out value even more. We are well positioned to deliver on our commitment to bring fresh, new WOW products that our customers want, at extreme value, and with an amazing shopping experience.