Five Below Inc (FIVE)

Five Below Inc (FIVE) stock decreased by 15.40% following the company's fourth-quarter earnings report, which missed estimates on the bottom line. Here are the key highlights:

• Earnings Report Highlights: Revenue in the quarter increased 19.1% to $1.34 billion, matching estimates. This growth was driven by new store openings and an extra week in the quarter. Adjusting for the extra week, revenue rose 14.9%, with comparable sales up 3.1%. Operating income rose 19% to $268.4 million, and earnings per share improved from $3.07 to $3.65, though this fell short of the consensus of $3.78. The company opened a record 205 stores in the year, capitalizing on whitespace opportunities in discount retail. However, like other retailers, Five Below has struggled with theft, impacting its profitability.
• Guidance and Outlook: Five Below provided solid full-year guidance, expecting revenue of $3.97 billion-$4.07 billion, driven by 225-235 new store openings and a flat-to-3% increase in comparable sales. On the bottom line, it forecast earnings per share of $5.71-$6.22, ahead of consensus estimates. However, first-quarter guidance was worse than expected, indicating that the retailer's growth will be toward the back half of the year.