Five Below Inc. shares headed 10% lower in after-hours trading Wednesday, after the youth-focused retailer’s earnings more than doubled but sales came in a little short of expectations, especially for previously existing stores.
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Analysts on average expected earnings of $1.11 a share on sales of $658 million with same-store sales growth of more than 36%, according to FactSet. Shares closed with a 1.5% gain Wednesday at $216.05, but then plunged more than 10% in the extended session following the announcement.
For the third quarter, executives projected earnings of 23 cents to 30 cents a share on sales of $550 million to $565 million. Analysts on average were forecasting earnings of 27 cents a share on sales of $550 million.
Five Below stock has increased 23.5% so far this year, as the S&P 500 index SPX,
