(Adds the CFO's comments and updates the stock movement in the last two paragraphs.)
Five Below (FIVE) reported fiscal Q1 adjusted earnings late Wednesday of $2.22 per diluted share, up from $0.86 a year earlier.
Analysts polled by FactSet expected $1.77.
Revenue in the three months ended May 2 rose to $1.29 billion from $970.5 million a year earlier.
Analysts expected $1.23 billion.
The company expects fiscal Q2 adjusted EPS of $1.17 to $1.29 on revenue of $1.18 billion to $1.2 billion. Analysts expect EPS of $1.13 on revenue of $1.15 billion.
The company raised fiscal 2026 guidance to adjusted EPS of $8.65 to $9.05 on revenue of $5.4 billion to $5.48 billion. The prior forecast was EPS of $7.74 to $8.25 on revenue of $5.2 billion to $5.3 billion.
Analysts expect EPS of $8.34 on revenue of $5.37 billion.
"We're being cautious, and we're looking at the world that our customers are living in with rising fuel costs, with very sticky inflation, with a somewhat soft labor market," Chief Financial Officer Daniel Sullivan said Wednesday on the earnings call, according to a FactSet transcript. "And we think a piece of that pain that they are feeling wasn't felt in the first quarter purely because of tax proceeds."
Five Below shares fell 12% in Thursday trading.
Price: $197.13, Change: $-25.76, Percent Change: -11.56%