By Senad Karaahmetovic
Shares of Five Below (NASDAQ:FIVE) are trading higher today after the company provided a business update. Based on the upbeat holiday sales results, Five Below expects Q4 and FY22 results to come in near the high-end of its guidance range, the company said in a press release.
FIVE said that sales for the period between October 30, 2022, to January 07, 2023, rose by 11.2% to $1 billion. Five Below recorded $902.3M in sales for the same period last year. Comparable sales for the Holiday Period increased by 0.9%.
Joel Anderson, President and CEO of Five Below, stated, "We are pleased with our holiday performance, with results in the upper end of our fourth quarter sales guidance range. We believe our diverse eight worlds and WOW merchandise offering along with increased and more targeted marketing effectively highlighted the tremendous value for our customers."
Five Below's guidance from the Q3 earnings report saw sales between $1.08B and $1.10B for the entire fourth quarter.
Goldman Sachs analysts weighed in positively on the pre-announcement and reiterated a Buy rating and a $190 per share price target on FIVE stock.
"Given investor concerns around high inventory levels in toys across the industry and consumer discretionary spending, we believe this announcement will be viewed positively," they wrote.
Five Below shares are up about 3.5% today.