Five Below Meets Q3 Views; Outlook Chills Stock Price

Five Below Inc FIVE met third-quarter expectations Wednesday, but its fourth-quarter outlook put a chill on its stock price.

The Philadelphia-based apparel retailer fell over 11 percent in recent after-hours trading to $39.60 a share.

Five Below forecast fourth-quarter net income of $0.59 cents to $0.62 cents a share, on sales of $262 million to $266 million. Wall Street expects fourth-quarter profit of $0.63 cents a share on sales of $268.83 million.

The company also forecast fourth-quarter same-store sales growth of 4 percent.

But in the recent quarter, same-store sales grew 1.5 percent. The company opened 12 new stores for a total count of 365 stores, up 20 percent from a year earlier.

In the recent third quarter, net income grew to $3.3 million, or $0.06 cents a share, from a year-earlier profit of $1.7 million or $0.03 cents a share.

Sales increased by 24.6 percent to $138 million from $110.7 million last year.

Analysts expected third-quarter earnings of $0.06 cents a share, on sales of $137 million.