Five Below Inc. boosted its sales forecast beyond Wall Street estimates after reporting a banner holiday shopping season.
The discount chain now sees comparable sales for the fourth quarter rising about 14.5%, roughly doubling a previous outlook. Analysts on average projected a gain of 8.3%.
The results point to how US shoppers continue to spend with a focus on deals and value as they navigate rising costs and an uncertain economic outlook.
“We are incredibly pleased with our holiday performance, which demonstrates the effectiveness of the strategies we have been executing this year,” Chief Executive Officer Winnie Park said in a statement on preliminary results.
The shares were little changed in premarket trading. The stock gained nearly 80% last year, compared to a roughly 6% advance for the S&P Midcap 400 Index.
The retailer also updated its outlook for this fiscal year, calling for net sales of about $4.75 billion and earnings per share of as much as $6.15. Those projections both topped Wall Street estimates.
Written by: Matthew Townsend @Bloomberg
The post “Discounter Five Below Has Robust Holiday as Shoppers Seek Deals” first appeared on Bloomberg