Investing.com -- Shares in Five Below Inc (NASDAQ:FIVE), an American discount chain store which markets its items at teenage and pre-teen customers, surged more than 7% in after-hours trading after reported stronger than expected quarterly earnings.
Boosted by a wave of new store openings throughout the country in major markets such as Louisville and Kansas, Five Below reported net sales of $153.7 million during the quarter, a spike of 22% from the same period in 2014. Same store sales also inched up 1.7% for the 13-week period that ended on May 2. Analysts expected the Philadelphia-based company to earn revenues of $151 million on earnings per share of 0.07.
Five Below is undergoing a transition period after Joel Anderson replaced longtime CEO and company co-founder Tom Vellios in February. Vellios remains with the company in a senior role. Anderson joined Five Below in 2014 after a stint as president and CEO of Walmart (NYSE:WMT).com.
"We are pleased with our first quarter results. Continued strength in new store performance drove the sales and earnings upside versus our guidance, reinforcing our excitement and confidence in the store growth potential for this brand," Anderson said in a statement.
Five Below also earned GAAP net income of $4.3 million or diluted income per common share of 0.08, up from $3.1 million in net income and 0.06 per share last year during the same period. In terms of forward guidance, Five Below expects net sales of $182 to $185 million in the second quarter with increases in comparable store sales by 4-5%. The company expects to open 25 new stores during the period.
"Our entire team is intently focused on driving brand awareness and engagement through marketing enhancements, continually updating our merchandise mix to keep the stores looking fresh and the product presentation compelling, and ensuring that we have the proper systems and infrastructure in place as we continue to grow and scale Five Below," Anderson added.
Shares in Five Below rose 2.70 or 7.69% to 37.80 in after-hours trading.