Five Below (FIVE) Q2 Earnings Report Preview: What To Look For

Discount retailer Five Below (NASDAQ:FIVE) will be reporting results tomorrow after market close. Here’s what you need to know.

Five Below missed analysts’ revenue expectations by 2.7% last quarter, reporting revenues of $811.9 million, up 11.8% year on year. It was a weak quarter for the company, with underwhelming revenue and earnings guidance for the next quarter.

Is Five Below a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Five Below’s revenue to grow 8.3% year on year to $822.1 million, slowing from the 13.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.54 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Five Below has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Five Below’s peers in the general merchandise retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Ross Stores delivered year-on-year revenue growth of 7.1%, meeting analysts’ expectations, and TJX reported revenues up 5.6%, topping estimates by 1.1%. Ross Stores traded up 1.7% following the results while TJX was also up 5%.

Read our full analysis of Ross Stores’s results here and TJX’s results here.

Investors in the general merchandise retail segment have had steady hands going into earnings, with share prices up 1.1% on average over the last month. Five Below is up 15.4% during the same time and is heading into earnings with an average analyst price target of $101.3 (compared to the current share price of $83.02).

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