On Wednesday, Five Below Inc. (FIVE, +2.45%) raised its guidance for the year and also provided a positive outlook for the current quarter.The discount retailer, which focuses on teen products and items, also reported an increase in sales of 22 percent.
This is a clear indication that the company’s plans to expand are working.
As a result, in after-hours trading, the shares of Five Below increased 8% to trade at $35.10 a share.
Since the beginning of the year until the close of Tuesday, the company’s shares have been down 14 percent.
Five Below reported that for the current quarter, earnings per share are expected to be between 12 to 13 cents a share on sales of between $182 million to $185 million.
According to Thomson Reuters analysts, expectations for the quarter are 12 cents EPS on sales of $182 million.
Meanwhile, for the year ending at the beginning of 2016, Five Below also expects their revenue to range between $820 million to $828 million. This marks an increase from its previous estimates of $816 million to $824 million. Added to this, the retailer also expects that for the quarter, earnings per share will be in the range of $1.03 to $1.06. This is higher than the previous estimate of $1.02 to $1.05 a share.
According to analysts polled by Thomson Reuters, there are expectations that Five Below will report EPS of $1.04 a share on sales of $822 million for the beginning of 2016.
As of the 2nd of May, Five Below had 385 stores. The company already added an additional 19 stores in the 1st quarter and is expected to open an additional 70 stores in 2015.
For the first quarter, the company earned 8 cents a share of $4.28 million in profit compared to 6 cents a share or $3.06 million in profits a year ago. Meanwhile, sales increased to $153.7 million, up 22 percent.
In 2012, Five Below went public and this company is well-known for selling a wide range of teen products which are priced from $1 to $5, such as candy, cosmetics, school supplies and more.