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Five Below (FIVE) to Post Q4 Earnings: What's in the Cards?
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Five Below, Inc. (FIVE - Free Report) is likely to register an increase in the top and the bottom line when it reports fourth-quarter fiscal 2021 results on Mar 30. The Zacks Consensus Estimate for revenues is pegged at $1,012 million, suggesting an improvement of 17.1% from the prior fiscal year’s quarterly reported figure.
The Zacks Consensus Estimate for earnings per share in the fiscal fourth quarter has been stable over the past 30 days at $2.48. The figure indicates an increase of 12.7% from the prior fiscal year’s quarterly tally.
For fiscal 2021, the Zacks Consensus Estimate for revenues is pegged at $2.86 billion, suggesting an improvement of 45.6% from the prior fiscal year’s quarterly reported figure. The consensus mark for the full-fiscal earnings stands at $4.95 per share, implying an increase from $2.12 earned last fiscal year.
The bottom line of this extreme-value retailer for tweens, teens and beyond surpassed the Zacks Consensus Estimate by 48.3% in the last reported quarter. Five Below has a trailing four-quarter earnings surprise of 22.4%, on average.
Factors to Note
Five Below has been benefiting for a while from its focus on providing trend-right products, strengthening digital capabilities and delivering better WOW products. FIVE’s favorable pricing strategy, and commitment to improvise merchandise assortment and achieve an efficient cost structure have been commendable so far. Management constantly digitizes vendor transactions, implements the core merchandizing platform and applies cloud-based data and analytics to analyze demand and accordingly, manage inventory.
All the aforesaid factors are most likely to have contributed to the results for the fiscal fourth quarter. On Jan 10, 2022, Five Below reported sturdy holiday sales results despite a challenging supply-chain backdrop. FIVE efficiently managed the product flow and remained proactive in meeting consumer demand. Net sales for the holiday period — from Oct 31, 2021 through Jan 1, 2022 — surged 20.6% to $870.9 million from $722.3 million reported in the comparable nine-week period from Nov 1, 2020 through Jan 2, 2021. Comparable sales for the holiday shopping season rose 7.7%.
Five Below had projected net sales for the fiscal fourth quarter in the range of $985-$1,005 million, hinting at growth from $858.5 million reported in the last fiscal year’s comparable quarter. FIVE had expected a 2-4% increase in comparable sales. Management had forecast earnings for the fiscal fourth quarter between $2.36 and $2.48 per share, indicating growth from $2.20 recorded in the prior fiscal year’s corresponding period. Management had projected fiscal 2021 net sales in the band of $2,837-$2,857 million, implying an increase of 45.6% from the last fiscal year’s reading. FIVE had anticipated a 30% jump in comparable sales. Management had forecast earnings between $4.82 and $4.94 per share, including benefit from share-based accounting of approximately 8 cents.
Clearly, the aforementioned factors raise optimism about the results. However, margins remain an area to watch out. Five Below had earlier anticipated its gross margin to delever slightly from the prior fiscal year’s quarterly level as some of the costs associated with the handling of delayed inventory receipts shifted from the third quarter to the fourth. Also, FIVE has been witnessing higher SG&A expenses for a while now.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Five Below this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Five Below has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to beat on earnings this season:
Costco (COST - Free Report) currently has an Earnings ESP of +0.35% and a Zacks Rank #2. COST is expected to register bottom-line growth when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings of $2.97 per share suggests growth of 8% from the prior fiscal year’s quarterly reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
Costco’s top line is also expected to rise from the last fiscal-year quarter’s actuals. The consensus mark for revenues stands at $49.6 billion, indicating an increase of 9.6% from the figure reported in the last fiscal year’s comparable quarter. COST has a trailing four-quarter earnings surprise of 13.3%, on average.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +1.28% and a Zacks Rank of 3. LULU is expected to register both top and bottom-line growth when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for LULU’s quarterly revenues is pegged at $2.13 billion, suggesting growth of 23.4% from the prior fiscal-year quarter’s level.
The Zacks Consensus Estimate for lululemon’s quarterly earnings is pegged at $3.27 per share, suggesting a 26.7% increase from the earlier fiscal-year period’s reported number. LULU delivered an earnings beat of 21%, on average, in the trailing four quarters.
Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +0.32% and a Zacks Rank of 3. DLTR is likely to register a bottom-line increase when it reports first-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $2.00 suggests a rise of 25% from the last fiscal-year quarter’s reported figure.
Dollar Tree’s top line is expected to rise from the earlier fiscal-year quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $6,742 million, indicating an improvement of 4% from the figure reported in the prior fiscal year’s quarter. DLTR has a trailing four-quarter earnings surprise of 11.8%, on average.
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Five Below (FIVE) to Post Q4 Earnings: What's in the Cards?
Five Below, Inc. (FIVE - Free Report) is likely to register an increase in the top and the bottom line when it reports fourth-quarter fiscal 2021 results on Mar 30. The Zacks Consensus Estimate for revenues is pegged at $1,012 million, suggesting an improvement of 17.1% from the prior fiscal year’s quarterly reported figure.
The Zacks Consensus Estimate for earnings per share in the fiscal fourth quarter has been stable over the past 30 days at $2.48. The figure indicates an increase of 12.7% from the prior fiscal year’s quarterly tally.
For fiscal 2021, the Zacks Consensus Estimate for revenues is pegged at $2.86 billion, suggesting an improvement of 45.6% from the prior fiscal year’s quarterly reported figure. The consensus mark for the full-fiscal earnings stands at $4.95 per share, implying an increase from $2.12 earned last fiscal year.
The bottom line of this extreme-value retailer for tweens, teens and beyond surpassed the Zacks Consensus Estimate by 48.3% in the last reported quarter. Five Below has a trailing four-quarter earnings surprise of 22.4%, on average.
Factors to Note
Five Below has been benefiting for a while from its focus on providing trend-right products, strengthening digital capabilities and delivering better WOW products. FIVE’s favorable pricing strategy, and commitment to improvise merchandise assortment and achieve an efficient cost structure have been commendable so far. Management constantly digitizes vendor transactions, implements the core merchandizing platform and applies cloud-based data and analytics to analyze demand and accordingly, manage inventory.
All the aforesaid factors are most likely to have contributed to the results for the fiscal fourth quarter. On Jan 10, 2022, Five Below reported sturdy holiday sales results despite a challenging supply-chain backdrop. FIVE efficiently managed the product flow and remained proactive in meeting consumer demand. Net sales for the holiday period — from Oct 31, 2021 through Jan 1, 2022 — surged 20.6% to $870.9 million from $722.3 million reported in the comparable nine-week period from Nov 1, 2020 through Jan 2, 2021. Comparable sales for the holiday shopping season rose 7.7%.
Five Below had projected net sales for the fiscal fourth quarter in the range of $985-$1,005 million, hinting at growth from $858.5 million reported in the last fiscal year’s comparable quarter. FIVE had expected a 2-4% increase in comparable sales. Management had forecast earnings for the fiscal fourth quarter between $2.36 and $2.48 per share, indicating growth from $2.20 recorded in the prior fiscal year’s corresponding period. Management had projected fiscal 2021 net sales in the band of $2,837-$2,857 million, implying an increase of 45.6% from the last fiscal year’s reading. FIVE had anticipated a 30% jump in comparable sales. Management had forecast earnings between $4.82 and $4.94 per share, including benefit from share-based accounting of approximately 8 cents.
Clearly, the aforementioned factors raise optimism about the results. However, margins remain an area to watch out. Five Below had earlier anticipated its gross margin to delever slightly from the prior fiscal year’s quarterly level as some of the costs associated with the handling of delayed inventory receipts shifted from the third quarter to the fourth. Also, FIVE has been witnessing higher SG&A expenses for a while now.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Five Below this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Five Below, Inc. Price and EPS Surprise
Five Below, Inc. price-eps-surprise | Five Below, Inc. Quote
Five Below has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to beat on earnings this season:
Costco (COST - Free Report) currently has an Earnings ESP of +0.35% and a Zacks Rank #2. COST is expected to register bottom-line growth when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings of $2.97 per share suggests growth of 8% from the prior fiscal year’s quarterly reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
Costco’s top line is also expected to rise from the last fiscal-year quarter’s actuals. The consensus mark for revenues stands at $49.6 billion, indicating an increase of 9.6% from the figure reported in the last fiscal year’s comparable quarter. COST has a trailing four-quarter earnings surprise of 13.3%, on average.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +1.28% and a Zacks Rank of 3. LULU is expected to register both top and bottom-line growth when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for LULU’s quarterly revenues is pegged at $2.13 billion, suggesting growth of 23.4% from the prior fiscal-year quarter’s level.
The Zacks Consensus Estimate for lululemon’s quarterly earnings is pegged at $3.27 per share, suggesting a 26.7% increase from the earlier fiscal-year period’s reported number. LULU delivered an earnings beat of 21%, on average, in the trailing four quarters.
Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +0.32% and a Zacks Rank of 3. DLTR is likely to register a bottom-line increase when it reports first-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $2.00 suggests a rise of 25% from the last fiscal-year quarter’s reported figure.
Dollar Tree’s top line is expected to rise from the earlier fiscal-year quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $6,742 million, indicating an improvement of 4% from the figure reported in the prior fiscal year’s quarter. DLTR has a trailing four-quarter earnings surprise of 11.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.