Executive Summary

• Five Below reported 3Q16 revenues of $199.5 million, up 17.6% from last year’s $169.7 million, and slightly below the consensus estimate of $200.7 million. EPS was $0.10, ahead of the $0.09 consensus estimate and up 25% year over year.
• Comps sales declined 0.2%, below consensus of 1.1%, driven by decreased comp transactions. The company attributed the comps decline to the strong performance of last year’s comp.
• For 4Q, Five Below raised the low end of sales guidance while keeping the high end unchanged compared to prior guidance. The company is expecting total sales in the range of $391 million to $397 million and EPS of $0.89–$0.92.