Executive Summary

• In 1Q18, Five Below reported a 27.2% increase in net sales year over year and a 3.2% increase in comparable sales. The leveraging of operating costs yielded a 93.3% jump in operating profit.
• Diluted EPS more than doubled year over year, to $0.39, and was comfortably ahead of the consensus estimate of $0.32.
• The midpoint of management guidance implies FY18 sales growth of 18.2%.