Five Below (FIVE) will report Q1 earnings after the market closes (16:01 last quarter). There is a conference call scheduled at 16:30.

Current Capital IQ consensus calls for Q1 adj. EPS of $0.35 (vs $0.39 last year) on revs of $362.3 mln (+18% Y/Y). Comps estimate of 3.7%.

  • Current Q1 guidance calls for EPS of $0.32-0.35 on revs of $361-366 mln on comps of +3-4%

  • FIVE will provide Q2 guidance in the press release.

    • Current Capital IQ consensus calls for Q1 EPS of $0.49 (vs $0.45 last year) on revs of $421.1 mln (+17.4% Y/Y). Comps estimate of 3.6%.

  • FIVE may update its FY 20 outlook which calls for EPS of $3.00-3.07 on revs of $1.865-1.885 bln and comps of ~3%

    • Current Cap IQ consensus estimates FY 20 EPS of $3.06 (vs $2.66 last year) on revs of $1.89 bln (+17.5% Y/Y). Comps estimate of +3.2%.

  • Last quarter, FIVE reported an in-line quarter and provided downside guidance. 

    • Same store comps in JanQ were +4.4% vs prior guidance of +3-4%. Full year comps were +3.9%.

  • 2019's 3 strategic focuses:

    • Elevating the experience for customers and associates

      • Investing in associates as they hired Judy Werthauser to newly created position of Chief Experience Officer, cited her work at Domino's and Target

      • Testing redesigned front end- ‘reimagine self-check out/'additional impulse items'

      • Roll out formal multiyear store remodel program w/ ~50 stores

    • Delivering even better WOW products

    • Enhancing supply chain

TECHS:

FIVE has a $7 bln market cap and trades at a forward P/E of 44x vs other names such as OLLI (44x) and BIG (9.6x).

TRADE: FIVE JUN14 135C