Latest news with #WinniePark
Yahoo
3 days ago
- Business
- Yahoo
Five Below CFO exits as Q1 sales jump 20%
This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. Despite new trade policy challenges, Five Below's first quarter net sales increased 19.5% year over year to $970.5 million, according to a company press release Wednesday. The discount retailer's comparable sales rose 7.1% and net income jumped 30.8% to $41.1 million. Five Below raised its full-year guidance, now expecting net sales to range from $4.33 billion to $4.42 billion (compared to its previously expected $4.21 billion to $4.33 billion range), comps to increase between 3% and 5% (from flat to up 3%) and net income to land between $223 million and $249 million (compared to $216 million to $250 million). The retailer's Chief Financial Officer and Treasurer Kristy Chipman will step down from the position effective Friday, per an SEC filing. Chief Operating Officer Kenneth Bull will serve as interim chief financial officer and treasurer (a role he previously held for over a decade) as the company searches for a replacement. Five Below kicks off a new fiscal year with a solid performance as the retail industry grapples with sudden shifts in trade policy. "Our first quarter results demonstrate the effectiveness of our strategy, grounded in trend-right product, extreme value and a fun store experience,' CEO Winnie Park said in a statement. 'We were pleased to see broad-based strength across the majority of our merchandising worlds, resulting in a transaction-driven 7.1% increase in comparable sales, as well as strong performance from our new stores.' Park also thanked Chipman for her contributions to the company, which she had worked at since 2023, per LinkedIn. Chipman's departure comes as Five Below co-founder Tom Vellios is set to depart the company as executive chairman of the board on Thursday. The previously announced move for Vellios means he will serve in an advisory role through the end of the year. On a call with analysts Wednesday, Park said the company had a heightened focus on newness this past quarter that included sourcing timely and trendy products. The retailer opened 55 new stores across 20 states and plans to open about 150 net new stores for the full fiscal year. The CEO said the company has been working to mitigate the impact of ever-changing U.S. tariff policies. Five Below's plans have included vendor negotiations and sourcing diversification, as well as assortment and price adjustments. Park said the company's efforts have already reduced its goods sourced from China by about 10 percentage points for the back half of the year. Five Below's latest results follow news in March that it hired former Forever 21 chief marketing, digital and omni officer, Jacob Hawkins, as its new chief marketing officer. The appointment came just a few months after Park left her role as CEO at Forever 21 in December to lead Five Below. The chief executive told analysts on the call Wednesday that marketing is an important focus for Five Below as it seeks to inform customers of its value during key moments in life, such as holidays or back-to-school. Recommended Reading Walgreens slashes dividend as US retail drags in Q1 Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Five Below: Strong Q1 Comparable Sales
Five Below beat analyst expectations across the board, reporting strong comparable sales growth of 7.1%. The second quarter outlook is solid, although comparable sales growth will slow as the year goes on. Tariffs and economic uncertainty aren't yet having a negative impact on customer purchasing trends or the bottom line. 10 stocks we like better than Five Below › Here's our initial take on Five Below's (NASDAQ: FIVE) fiscal 2025 first-quarter financial report. Metric Q1 FY24 Q1 FY25 Change vs. Expectations Revenue $811.9 million $970.5 million +19.5% Beat Earnings per share (adjusted) $0.60 $0.86 +43% Beat Comparable sales growth (2.3%) 7.1% +9.4 pp n/a New store openings 61 55 -10% n/a Five Below reported solid first-quarter results despite a complex macroeconomic backdrop. Comparable sales rose by 7.1%, driven largely by an increase in transactions, while total revenue jumped 19.5%. The company opened 55 new stores during the quarter, and those stores are performing well, according to Five Below CEO Winnie Park. The retailer is navigating tariffs and global economic uncertainty, and so far, those potential headwinds haven't had much of an impact on Five Below's business. Operating income and adjusted earnings per share rose significantly from the first quarter of fiscal 2025, with the latter beating analyst expectations. For the fiscal second quarter, Five Below expects to open around 30 net new stores and produce comparable sales growth between 7% and 9%. Total revenue should come in between $975 million and $995 million, while adjusted EPS is expected between $0.50 and $0.62. For the full fiscal year, the company sees comparable sales growth between 3% and 5%, 150 net new stores, revenue between $4.33 billion and $4.42 billion, and adjusted EPS between $4.25 and $4.72. Share prices of Five Below were up about 2% in after-hours trading on Wednesday soon after the release of the first-quarter report. The company beat analyst estimates for revenue and adjusted EPS, and its second-quarter outlook looked solid. However, the full-year outlook called for slower comparable sales growth, which could be keeping the stock price in check. While tariffs and economic uncertainty aren't having much of an impact on Five Below right now, the situation is fluid. The company sourced about 60% of its purchases from domestic vendors in 2024, although it's difficult to know how exposed those vendors are to tariffs. The timing and makeup of trade deals the U.S. strikes with other countries will have an impact on Five Below's costs, and consumer behavior remains a wildcard. Investors should listen to Five Below's earnings call on Wednesday evening for more information from management on how tariffs are affecting the full-year outlook. Full earnings report Investor relations page Before you buy stock in Five Below, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Five Below wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $869,841!* Now, it's worth noting Stock Advisor's total average return is 789% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Timothy Green has no position in any of the stocks mentioned. The Motley Fool recommends Five Below. The Motley Fool has a disclosure policy. Five Below: Strong Q1 Comparable Sales was originally published by The Motley Fool
Yahoo
4 days ago
- Business
- Yahoo
Why Five Below Stock Was Moving Higher This Week
Five Below posted strong first-quarter results Wednesday night. The stock also seemed to benefit from positive commentary earlier in the week. Five Below expects comparable-sales growth of 7% to 9% in the second quarter. 10 stocks we like better than Five Below › Shares of Five Below (NASDAQ: FIVE) were moving higher this week in response to a better-than-expected first-quarter earnings report. In addition, commentary from Dollar General, which is also reported earnings this week, led investors to believe that discount stores were well-positioned in the current economic environment. As of 2:59 p.m. on Thursday, the retail stock was up 8.5%, according to data from S&P Global Market Intelligence. Five Below, which primarily sells items for $5 or less like toys, games, accessories, and snacks, said that comparable sales in the quarter rose 7.1%, driving overall revenue up 19.5% to $970.5 million, which edged out estimates at $966.5 million. The growth in the quarter reflects new store openings, as the company added 55 locations in the period to bring its grand total to 1,826. Comparable sales growth was also fueled by "trend-right product, extreme value, and a fun store experience," according to CEO Winnie Park. The tariff-related pressures in the macro environment may have helped too. Adjusted operating income surged from $38.1 million to $59.6 million, and adjusted earnings per share jumped from $0.60 to $0.86, ahead of the consensus at $0.83. The company also said CFO Kristy Chapman is stepping down, and it would begin a search for her replacement. Looking ahead, Five Below expects its momentum to continue into the second quarter, calling for comparable-sales growth of 7%-9% and revenue of $975 million-$995 million, with 30 new stores. On the bottom line, it sees adjusted earnings per share of $0.50-$0.62. That forecast compares to estimates of $958.3 million in revenue and EPS of $0.58. Five Below expects slower top-line growth in the second half of the year. Still, the comparable-sales results are impressive in the current environment. The stock trades at a premium, but it's easy to see why after the latest report. Before you buy stock in Five Below, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Five Below wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $869,841!* Now, it's worth noting Stock Advisor's total average return is 789% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool recommends Five Below. The Motley Fool has a disclosure policy. Why Five Below Stock Was Moving Higher This Week was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
FIVE Q1 Earnings Call: Margin Headwinds Amid Strong Comp Sales and Store Growth
Discount retailer Five Below (NASDAQ:FIVE) exceeded Wall Street's revenue expectations in Q1 CY2025, but sales rose 19.5% year on year to $970.5 million. Its non-GAAP EPS of $0.86 per share was 3.3% above analysts' consensus estimates. Is now the time to buy FIVE? Find out in our full research report (it's free). Revenue: $970.5 million (19.5% year-on-year growth) Adjusted EPS: $0.86 vs analyst estimates of $0.83 (3.3% beat) Adjusted Operating Income: $59.57 million vs analyst estimates of $56.14 million (6.1% margin, 6.1% beat) Revenue Guidance for Q2 CY2025 is $985 million at the midpoint, above analyst estimates of $950.1 million Management raised its full-year Adjusted EPS guidance to $4.48 at the midpoint, a 1.7% increase Locations: 1,826 at quarter end, up from 1,605 in the same quarter last year Same-Store Sales rose 7.1% year on year (-2.3% in the same quarter last year) Market Capitalization: $6.67 billion Five Below's first quarter results reflected meaningful gains in both comparable sales and store productivity, as management credited a disciplined approach to product assortment, improved inventory flow, and investments in the in-store experience. CEO Winnie Park cited broad-based outperformance across product categories, with notable wins in seasonal items, beauty, novelty food, and collectibles. The company also emphasized improved operational alignment between merchandising, supply chain, and store teams, which contributed to strong transaction growth. Park noted that, 'our crew is now in a much better position to assist customers while also ensuring our shelves are stocked with trend-right products our customers want and need.' The company's focus on targeted marketing, particularly through social media and creator content, was highlighted as helping drive traffic and conversion. Looking ahead, Five Below's guidance is shaped by ongoing efforts to mitigate tariff-related margin pressures while maintaining momentum in sales and store expansion. Management expects continued strength in customer transactions and trend-right merchandising, but acknowledged macroeconomic uncertainty and higher operating costs. CFO Ken Bull explained that tariff mitigation strategies, including vendor diversification and selective price adjustments, are embedded in forward guidance. Park outlined that, 'we will act quickly and remain nimble and flexible in our approach as we react to macro news, and find solutions to a changing environment.' The company is also prioritizing a simplified pricing structure and further investments in the customer experience as it enters new markets and pursues additional store openings. Management attributed the quarter's results to execution on merchandising, operational improvements in stores, and targeted marketing, while outlining margin pressures from tariffs and labor investments. Merchandising and product mix: Leadership highlighted success with trend-driven assortments, especially in beauty, novelty food, and collectibles, noting that both category and trend-led products contributed to comp sales growth. Operational improvements: Investments in labor hours and streamlined store processes improved customer engagement and shelf stocking, allowing store associates to focus more on the customer experience and in-stock positions. Inventory management: The company improved inventory flow and health, reducing reserves for aged stock and leveraging accelerated receipts to support key selling periods. Management expects inventory levels to remain elevated as they adapt to supply chain shifts and tariff-related sourcing changes. Marketing and customer acquisition: Five Below increased its focus on digital marketing and social media content, using storytelling to connect in-store and online experiences, which management believes contributed to higher traffic and transaction growth. Tariff and cost mitigation: Management responded to tariff increases by diversifying vendors, expanding sourcing outside China, and implementing a simplified pricing structure, with approximately 15% of SKUs seeing price adjustments (both up and down) to maintain value perception while managing cost pressures. Five Below's outlook is driven by sales momentum, initiatives to offset tariffs, and continued investment in stores and marketing, balanced against persistent margin headwinds. Tariff mitigation strategies: Management is accelerating efforts to diversify global sourcing, reduce reliance on China, and negotiate with vendors, aiming to limit the impact of tariffs on gross margin. The company expects about 150 basis points of annual operating margin pressure from tariffs, partially offset by cost-saving initiatives and price optimization. Store expansion and productivity: Five Below plans to continue opening new stores, particularly in underpenetrated markets such as the Pacific Northwest, leveraging improved productivity and execution consistency. The company maintains its long-term target of reaching 3,000 stores in the U.S., supported by a disciplined approach to expansion. Customer experience and marketing investments: Ongoing enhancements in labor allocation, process efficiency, and digital marketing are expected to sustain transaction growth and brand engagement. Management is cautious about macroeconomic uncertainty and plans to remain flexible with investments to protect profitability and drive long-term growth. In upcoming quarters, the StockStory team will monitor (1) the effectiveness of tariff mitigation and sourcing diversification on gross margin, (2) sustained strength in transaction growth and same-store sales trends, and (3) the pace and productivity of new store openings, especially in untapped regions. Progress on pricing adjustments and inventory management will also serve as key indicators of execution. Five Below currently trades at a forward P/E ratio of 25.9×. Should you double down or take your chips? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Time of India
5 days ago
- Business
- Time of India
US stocks slide lower as investors focus on trade, key jobs data
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Wall Street remains listless on Thursday, as the countdown ticks toward Friday's highly anticipated jobs S&P 500 was 0.3% lower in morning trading. After sprinting through May and rallying within a couple good days' worth of gains of its all-time high, the index at the center of many 401(k) accounts has lost momentum as financial markets wait for the next big trigger to move, up or Dow Jones Industrial Average was down 162 points, or 0.4%, as of 10 a.m. Eastern time, and the Nasdaq composite was 0.2% activity in options markets suggests investors believe the next big move for the S&P 500 could come on Friday, when the U.S. Labor Department will say how many more jobs U.S. employers created than destroyed during May. The expectation on Wall Street is for a slowdown in hiring from April.A resilient job market has been one of the linchpins that's propped up the U.S. economy, and the worry is that all the uncertainty created by President Donald Trump's on-and-off tariffs could cause businesses to freeze their & Gamble, the giant behind such brands as Pampers diapers and Cascade dish detergent, said Thursday it will cut up to 7,000 jobs over the next two years to boost its ability to make profit. Its stock fell 1.7%.A report on Thursday said that more U.S. workers applied for unemployment benefits last week than economists expected. The number still remains relatively low compared with history, but it hit its highest level in eight months.A separate report said that U.S. workers overall produced less stuff per hour during the start of the year than economists expected. The drop in productivity is a potentially discouraging trend for Wall Street, Five Below rallied 10.7% after the retailer, which sells products priced between $1 and $5, reported a stronger profit for the latest quarter than analysts expected. CEO Winnie Park credited broad-based strength across most of its jumped 17.4% after the database company likewise delivered a stronger profit than analysts the losing side of Wall Street was Brown-Forman, the company behind Jack Daniel's and Woodford Reserve. Its profit and revenue for the latest quarter fell short of Wall Street's expectations, and the company said it expects its upcoming fiscal year to be challenging because of 'consumer uncertainty, the potential impact from currently unknown tariffs' and other things. Its stock fell 15.6%.The CEO of PVH, the company behind the Calvin Klein and Tommy Hilfiger brands, likewise cited challenges from 'an increasingly uncertain consumer and macroeconomic backdrop.'Its stock fell 18.4% even though it reported stronger revenue and profit for the latest quarter than analysts expected. The company cut its profit forecast for its full fiscal year, saying it will likely be able to offset only some of the potential hit it will take because of that Trump would lower his tariffs after reaching trade deals with other countries have been among the main reasons the S&P 500 has rallied back after dropping roughly 20% below its record two months ago. But talks are still ongoing, and nothing is assured. In the meantime, many companies have been cutting or withdrawing their forecasts for profit this upcoming year because of all the spoke with China's leader, Xi Jinping, on Thursday amid hopes for progress between the world's two largest economies. The conversation was confirmed by the Chinese foreign ministry, which said Trump initiated the call. The White House did not immediately are also building that the Federal Reserve will need to cut interest rates later this year in order to prop up the economy. Yields took a sharp turn lower on Wednesday after reports came in weaker than expected on the U.S. job market and on activity among U.S. services Fed has yet to cut interest rates this year after slashing them through the end of 2024. Part of the reason for the pause is that the Fed wants to see how much Trump's tariffs will hurt the economy and raise inflation. While lower interest rates could boost the economy, they also tend to give inflation more yields held steadier on Thursday ahead of Friday's jobs report. The yield on the 10-year Treasury eased to 4.35% from 4.37% late Wednesday after tumbling from 4.46% the day stock markets abroad, indexes were mixed amid modest moves across much of Europe after the European Central Bank cut its main interest rate again, as was widely moves were larger in Asia, where South Korea's Kospi jumped 1.5% after the country's new president and leading liberal politician Lee Jae-myung began his term, vowing to restart talks with North Korea and beef up a partnership with the U.S. and Japan.
