Five Below posted its 2022 guidance that was below consensus, leading to the its shares tumbling on Wednesday.
For the fourth quarter, the discount retail company posted diluted earnings of $2.49 a share, compared to consensus of $2.48 a share. Revenue of $996.3 million was slightly below analysts’ forecasts of $1 billion.
The company’s full-year revenue rose +45.2% to $2.85 billion. Earnings per share in the year were $4.95. Both figures were in line with analysts’ expectations.
For the fiscal first quarter of 2022, discount retail company is expecting revenue to range between $644 million and $658 million, assuming a flat to 2% decrease in comparable sales. Analysts surveyed by FactSet expect first-quarter revenue of $687 million. The company projects earnings in the range of 54 cents and 62 cents a share, vs. Wall Street consensus of 89 cents.
The outlook from the company reflected pandemic-driven delays in construction that have resulted in a shift of stores into the second half of the 2022 fiscal year and the first half of 2023. It also includes the ongoing inflationary pressures, according to the company.