Five Below, Inc. (FIVE) has reported a 24.16 percent rise in profit for the quarter ended Apr. 29, 2017. The company has earned $8.39 million, or $0.15 a share in the quarter, compared with $6.76 million, or $0.12 a share for the same period last year.
Revenue during the quarter grew 20.84 percent to $232.88 million from $192.72 million in the previous year period. Gross margin for the quarter expanded 41 basis points over the previous year period to 31.68 percent. Total expenses were 94.51 percent of quarterly revenues, up from 94.42 percent for the same period last year. That has resulted in a contraction of 9 basis points in operating margin to 5.49 percent.
Operating income for the quarter was $12.78 million, compared with $10.75 million in the previous year period.
Joel Anderson, chief executive officer, stated: "We are very pleased to start 2017 with strong first quarter results. Sales, comps and earnings came in above expectations, reinforcing the strength and consistency of Five Below, Inc. as a leading high growth, value retailer. We opened 31 stores in the quarter, and could not be happier with the results of our initial entry into California in late April." "Given our performance and expectations for the second quarter, including the spinner trend continuing, we are raising our guidance for the year," added Anderson. "We are excited to continue to grow our store base with disciplined execution and deliver on our commitment to provide unbelievable value to our customers with a compelling assortment of trend-right products and a great shopping experience."
For the second-quarter 2017, Five Below, Inc. forecasts revenue to be in the range of $273 million to $280 million. The company projects net income to be in the range of $13.40 million to $14.70 million. It expects diluted earnings per share to be in the range of $0.24 to $0.27.
For fiscal year 2017, Five Below, Inc. forecasts revenue to be in the range of $1,227 million to $1,242 million. The company projects net income to be in the range of $88.40 million to $91.10 million. It expects diluted earnings per share to be in the range of $1.59 to $1.64.
Operating cash flow turns positive
Five Below, Inc. has generated cash of $33.73 million from operating activities during the quarter as against cash outgo of $10.45 million in the last year period.
The company has spent $44.96 million cash to meet investing activities during the quarter as against cash outgo of $17.05 million in the last year period.
Cash flow from financing activities was $0.38 million for the quarter, up 92.31 percent or $0.18 million, when compared with the last year period.
Cash and cash equivalents stood at $65.24 million as on Apr. 29, 2017, up 153.11 percent or $39.46 million from $25.77 million on Apr. 30, 2016.
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