Executive Summary

• Five Below reported 4Q17 revenues of $504.8 million, up 30.1% year over year and beating the consensus estimate of $502.7 million. Diluted EPS was $1.21, beating the $1.16 consensus estimate.
• Comparable sales were up 5.9%, which was at the higher end of the company’s 4%–6% guidance range and slightly below the consensus estimate of 6.0%.
• For 1Q18, the company expects net sales of $290–$294 million, based on expected comp growth of 3%–4%. Five Below expects net income growth of 17.4%, to $18.8 million. The company expects EPS of $0.31–$0.34 for the quarter, based on 55.9 million diluted shares.