Five Below Shares Climb Up On Better Than Expected Q4 Earnings

Five Below Inc (NASDAQ:FIVE)

Five Below, Inc. (FIVE), a national specialty value retailer company yesterday reported their fiscal fourth quarter 2016 financial results. Five reported fourth quarter earnings of $0.90 per share which beat analyst expectations of $0.89 per share. Five reported fourth quarter revenues of $388.1 million which beat analyst expectations of $387 million.

Five Below, Inc. CEO’s Comments

Joel Anderson, CEO, stated: “Our performance in 2016 once again illustrates the strength, consistency and broad appeal of the Five Below model with a compelling merchandise assortment designed to ‘wow’ our customers at incredible values. We achieved another strong year of 20% sales growth, reaching the $1 billion milestone in sales as we opened 85 net new stores and delivered our 11th consecutive year of positive comparable sales growth. This top line performance was accompanied by operating leverage, while we continued to invest in the business, resulting in a 24% increase in EPS for 2016.”

“We are excited to be opening approximately 100 new stores this year and to bring our unique and differentiated concept to California. The strength of our business model, commitment to delivering unbelievable value to our customers and disciplined execution continue to drive our success. We have a strong track record as a leading high growth value retailer and remain on track to achieve our 20/20 through 2020 strategy.” Globe Newswire

FIVE Technical Analysis

FIVE Technical Analysis

FIVE opened trading yesterday at $38.70 which was down from the previous day’s trading close of $38.85. Shares closed trading yesterday at $38.13 and spiked up after market to $41.26, equivalent to a 8% increase from the closing price. Taking a look at the daily chart we can see that the last time FIVE traded above these levels we have to go all the way back to January 17th, when it traded at $41.45.

Taking a closer look at the daily chart we can see that before the spike up FIVE had been in an overall downward trend dating back to December 7th, 2016 when it traded at $43.84. FIVE has a float of 53.45 million shares and traded 1.84 times the normal daily trading volume on Wednesday.

For day trading purposes, I would like to see FIVE open trading on Thursday above $40.25 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap up. This has great potential and will be on my stocks to watch list.

Company Profile

Five Below, Inc. operates as a specialty value retailer in the United States. It offers accessories, including novelty socks, sunglasses, jewelry, scarves, gloves, hair accessories, athletic tops and bottoms, and T-shirts, as well as beauty products comprising nail polish, lip gloss, fragrance, and branded cosmetics; and items used to complete and personalize living space, including glitter lamps, posters, frames, fleece blankets, pillows, candles, incense, and related items, as well as provides storage options for the customer’s room and locker.

The company also provides sport balls; team sports merchandise and fitness accessories, such as hand weights, jump ropes, and gym balls; games, including name brand board games, puzzles, toys, and plush items; and pool, beach and outdoor toys, games, and accessories.

In addition, it offers accessories, such as cases, chargers, headphones, and other related items for PCs, cell phones, and tablet computers; books, video games, and DVDs; craft activity kits; arts and crafts supplies that consist of crayons, markers, and stickers; and trend-right items for school comprising backpacks, fashion notebooks and journals, novelty pens and pencils, and everyday name brand items.

Further, the company provides party goods, decorations, and greeting cards, as well as every day and special occasion merchandise products; assortment of classic and novelty candy bars, movie-size box candy, and gum and snack food; chilled drinks through coolers; and seasonally-specific items used to celebrate and decorate for events, such as Christmas, Easter, Halloween, and St. Patrick’s Day.

It primarily serves teen and pre-teen customers. As of December 1, 2016, it operated approximately 517 stores in 31 states. The company was formerly known as Cheap Holdings, Inc. and changed its name to Five Below, Inc. in August 2002. Five Below, Inc. was founded in 2002 and is headquartered in Philadelphia, Pennsylvania.