Five Below Stock Rises 10%+ on New CEO, Fiscal Q3 Beats and Well-Regarded Guidance

FIVE gained 12.4% to $117.81 shortly before 4:30 p.m. ET after the company reported $0.42 per share on a non-GAAP basis in the three months ended Nov. 2, beating the $0.17 that analysts reportedly expected.

Revenues came in at $843.7 million, exceeding analysts' reported $801 million consensus forecast.

"We are pleased to report third quarter results that exceeded our outlook," interim CEO Ken Bull said in releasing the results. "We delivered stronger performance across a broader group of our merchandise worlds compared to the second quarter and improved our operational execution."

FIVE also guided fiscal Q4 results to $3.23-$3.41 in non-GAAP EPS vs. the $3.33 that analysts had reportedly previously expected. Additionally, management guided fiscal Q4 revenues to a $1.35 billion-$1.38 billion range compared to the $1.36 billion that published reports said analysts had forecast.

For fiscal 2024 as a whole, the company guided non-GAAP EPS to $4.78-$4.96 on $3.84 billion-$3.87 billion of revenues. That exceeded the $4.61 EPS on $3.8 billion of revenues that analysts had reportedly been modeling.

Meanwhile, Five Below announced the appointment of Forever 21 CEO Winnie Park as its new chief executive, replacing Joel Anderson, who stepped down in July amid lackluster results for the chain.

"I am excited to be a part of the continued growth of the brand," Park said in a statement. "There is enormous opportunity to build on the exciting initiatives that are already underway as we elevate our product, value and experience."