Five Below Inc (NASDAQ:FIVE) reported in-line Q3 earnings, while sales exceeded estimates. The company also raised the low end of FY19 earnings guidance.
The Philadelphia-based Five Below reported net sales increased by 20.7% to $377.4 million from $312.8 million in the third quarter of fiscal 2018; comparable sales increased by 2.9%.
FIVE opened 61 new stores and ended the quarter with 894 stores in 36 states. This represents an increase in stores of 20.0% from the end of the third quarter of fiscal 2018.
Operating income was $12.7 million compared to $15.5 million in the third quarter of fiscal 2018. As expected, operating income decreased primarily due to net unmitigated tariff costs and the timing of certain merchandise costs.
Net income was $10.2 million compared to $13.5 million in the third quarter of fiscal 2018.
Diluted income per common share was $0.18 compared to $0.24 in the third quarter of fiscal 2018. The benefit from share-based accounting was less than a penny in the third quarter of fiscal 2019 compared to $0.02 in the third quarter of fiscal 2018.
Said CEO Joel Anderson, "We are very pleased with our third-quarter performance. Our strong top and bottom line results exceeded our expectations and were driven by continued strength from our new stores as well as broad-based performance across our worlds. We also opened a record 61 stores in diverse markets during the quarter, and have since completed our 150 planned new stores for the year."
Shares skyrocketed $8.72, or 7.4%, to $126.78.
