Executive Summary

• Five Below reported 2Q16 EPS of $0.18, up 38.7% year over year. The result beat the consensus estimate by a penny and was ahead of guidance of $0.16–$0.17. Revenues were $220.1 million, up 20.8% year over year and slightly above the consensus estimate of $219.6 million.
• Comparable-store sales increased by 3.1%, which was ahead of guidance of “about 3%” but below the consensus estimate of 3.4%.
• The company raised its full-year revenue guidance, but narrowed its full-year EPS guidance and offered 3Q16 guidance that was below consensus estimates.