Shares of Five Below Inc. sank 6.3% in morning trade Monday, after the discount retailer provided a downbeat profit outlook despite a record holiday sales performance. The company said it expects fiscal fourth-quarter earnings per share of $1.09 to $1.16, which is below the FactSet consensus of $1.17. The company also expects revenue of $491 million to $503 million, compared with the FactSet consensus of $501.1 million, and same-store sales growth 4% to 6%, compared with expectations of a 5.6% increase. The company said the outlook comes on the heels of a 27% increase in net sales for the holiday period to $442.6 million, and a 6.7% jump in same-store sales, which was the best holiday-sales performance since the company went public in 2012. Five Below said its outlook doesn’t include any impact from recently enacted tax legislation. The stock, which closed at a record high on Jan. 4, has soared 18% over the past three months, while the SPDR S&P Retail ETF has climbed 11% and the S&P 500 has gained 7.5%.
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