UPDATE: Five Below Q2 Net Profit Down 44%

Five Below FIVE reported a 44% drop in its fiscal second-quarter profit. Five Below's quarterly profit fell to $1.25 million, from $2.21 million, in the year-ago period. On a per-share basis, the company posted a loss of $3.41, versus a year-earlier loss of $0.10. Excluding items, Five Below earned $0.04 per share. Its sales surged 40% to $86.8 million. However, analysts were expecting a profit of $0.01 per share on sales of $82 million. Its gross margin rose to 33.1% from 32.3%, while same-store sales climbed 8.6%. For the year, the company projects adjusted earnings of $0.45 to $0.47 per share on sales of $402 million to $407 million. However, analysts were expecting earnings of $0.44 per share on revenue of $399 million. Five Below shares dropped 5.89% to $32.75 in after-hours trading.