{"id":1486769,"date":"2024-08-29T17:20:00","date_gmt":"2024-08-29T21:20:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1486769"},"modified":"2024-08-29T17:20:00","modified_gmt":"2024-08-29T21:20:00","slug":"goldman-says-five-belows-earnings-indicate-core-customer-pressured-is-reducing-discretionary-spending","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/goldman-says-five-belows-earnings-indicate-core-customer-pressured-is-reducing-discretionary-spending\/1486769\/","title":{"rendered":"Goldman Says Five Below’s Earnings Indicate “Core Customer Pressured & Is Reducing Discretionary Spending”\u00a0"},"content":{"rendered":"

Goldman Says Five Below’s Earnings Indicate “Core Customer Pressured & Is Reducing Discretionary Spending”\u00a0<\/span><\/p>\n

\n

Highlighting mixed consumer trends, discount retailer Five Below reported a smaller-than-expected decline in second-quarter comparable sales, beating\u00a0analysts’ projections tracked by Bloomberg. Although the company lowered its full-year comparable sales forecast, it still exceeded analysts’ expectations.<\/p>\n

<\/a><\/p>\n

Here’s a snapshot of second-quarter results (courtesy of Bloomberg):<\/p>\n

Net sales $830.1 million, +9.4% y\/y, estimate $822 million<\/em><\/p>\n

Comparable sales -5.7%, estimate -6.4%<\/em><\/strong><\/p>\n

EPS 60c vs. 84c y\/y, estimate 54c<\/em><\/p>\n

Total location count 1,667, +3.9% q\/q, estimate 1,660<\/em><\/p>\n

Stores opening 62, +55% y\/y, estimate 60<\/em><\/p>\n

Third quarter forecast:\u00a0<\/p>\n

Sees net sales $780 million to $800 million, estimate $790.2 million<\/em><\/p>\n

Sees a mid-single-digit decrease in comparable sales<\/em><\/p>\n

Sees adjusted EPS 10c to 22c, estimate 15c<\/em><\/p>\n

Sees net loss $2 million to $13 million<\/em><\/p>\n

Full-year forecast:<\/p>\n

Sees net sales $3.73 billion to $3.80 billion, saw $3.79 billion to $3.87 billion, estimate $3.78 billion (Bloomberg Consensus)<\/em><\/strong><\/p>\n

Sees comparable sales about -5.5% to -4%, saw -5% to -3%, estimate -5.9%<\/em><\/p>\n

Sees adjusted EPS $4.35 to $4.71, saw $5.00 to $5.40, estimate $4.75<\/em><\/p>\n

Sees net income $220 million to $244 million<\/em><\/p>\n

Sees gross capital expenditures about $335 million to $345 million<\/em><\/p>\n

Commenting on Five Below’s mixed earnings is Goldman’s\u00a0Kate McShane.<\/p>\n

<\/a><\/p>\n

McShane noted that “declines in comp ticket during 2Q with lower units per transaction” only “suggests that FIVE’s core customer remains pressured and is continuing to reduce discretionary spending<\/strong>, and that FIVE’s assortment is not currently providing an attractive value to their customers.”\u00a0<\/p>\n

<\/a><\/p>\n

“While we were encouraged to hear that traffic trends have improved quarter to date, conversion likely remains pressured<\/strong> as guidance implies that comp trends for 2H24 will be similar to 2Q’s -5.7%,”\u00a0McShane said.\u00a0<\/p>\n

She continued, “We also note that FIVE continues to see diverging trends between income cohorts, with softer trends from lower-income households but stronger trends from higher-income households, suggesting at least some element of trade down is taking place<\/strong>. Although the implied trade-down trends are encouraging, we believe pressure on FIVE’s lower-income customers will continue to weigh on conversion in the near term<\/strong>.”\u00a0<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nThu, 08\/29\/2024 – 13:20<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/goldman-says-five-belows-earnings-warn-core-customer-pressured-reducing-discretionary<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Goldman Says Five Below’s Earnings Indicate “Core Customer Pressured & Is Reducing Discretionary Spending”\u00a0 Highlighting mixed consumer trends, discount retailer Five Below reported a smaller-than-expected…<\/p>\n","protected":false},"author":0,"featured_media":1486770,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1486769","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1486769","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1486769"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1486769\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1486770"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1486769"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1486769"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1486769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}