Five Below Rallies After Company Beats Estimates

Discount retailer Five Below Inc. reported late Wednesday an adjusted net income of $4.3 million, or 8 cents a share, in the first quarter, compared with $3.6 million, or 7 cents a share, a year ago. Sales rose 22% to $154 million in the quarter, from $126 million a year ago. Analysts polled by Factset had expected the company to report earnings of 7 cents a share on sales of $151 million. The company opened 19 new stores in the quarter. "As we look ahead, our number one priority remains store growth. We are on track to open 70 stores and enter six new states in 2015, and we are also making good progress on our planned 85 openings for 2016," said Chief Executive Joel Anderson in a statement. Shares of Five Below rallied 8.3% in after-hours trading, after ending the regular session up 2.5%.