Five Below Sinks on Lower-Income Shopper Struggles: What To Know

Five Below stock is lower after the discount retailer said "underperformance in the lower-income demographic" is weighing on its financial results.

outside of a Five Below store in Hudson, New York
(Image credit: Angus Mordant/Bloomberg via Getty Images)

Five Below (FIVE) stock is down sharply in Thursday's session after the discount retailer disclosed lower-than-anticipated fiscal first-quarter results and slashed its full-year outlook.

In the 13 weeks ended May 4, Five Below's net sales increased 11.8% year-over-year to $811.9 million, driven by the opening of 61 new stores. However, same-store sales decreased 2.3%. FIVE also said its earnings per share (EPS) fell 10.4% to 60 cents from the year-ago period.

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MetricNew OutlookPrevious Outlook
Revenue$3.79 billion to $3.87 billion$3.97 billion to $4.07 billion
Same-store sales(3%) to (5%)Flat to 3%
EPS$5 to $5.40$5.71 to $6.22

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Joey Solitro

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.