06:40 AM EDT, 03/20/2025 (MT Newswires) -- Five Below ( FIVE ) shares jumped early Thursday as its fiscal fourth-quarter results topped Wall Street forecasts, while the discount retailer issued a fiscal first-quarter sales outlook above market estimates at the midpoint despite the expected impact of tariffs.

Sales are pegged at $905 million to $925 million for the first quarter, the company said late Wednesday, compared with the current consensus on FactSet for $913.2 million. The forecast is based on about 50 new store openings and takes into account a comparable sales range of flat to up 2%. The Street is looking for same-store sales growth of 0.5%.

Adjusted earnings are anticipated to come in between $0.50 and $0.61 per share for the ongoing quarter, compared with the Street's forecast of $0.56. The stock climbed 12% in premarket activity.

Five Below ( FIVE ) said its guidance reflects the expected impact of tariffs that are currently in place. "The breadth and magnitude of the recently announced tariffs are significant, given that approximately 60% of our total cost of goods are imported from China, either directly or through our domestic vendors," Chief Financial Officer Kristy Chipman said during an earnings call, according to a FactSet transcript.

The retailer's mitigation efforts against the tariffs are "well underway," including vendor collaboration, selective price adjustments and diversification of sourcing, Chipman said. "We expect a margin headwind from tariffs net of our mitigation efforts," the CFO told analysts.

For fiscal 2025, Five Below ( FIVE ) expects adjusted EPS of $4.10 to $4.72 on a sales range of $4.21 billion to $4.33 billion. The Street is looking for non-GAAP EPS of $4.68 and sales of $4.28 billion. Comparable sales are seen at flat to up 3%, while the market's forecast is for a gain of 1.9%.

Short-term trends are poised to accelerate with comparisons expected to "ease materially" in spring or early summer, Truist Securities said in a Wednesday client note. However, the brokerage forecasts the company's earnings to potentially decline by 10% on a yearly basis due to tariff pressure on cost of goods sold. "While we may see near-term strength, we could also see a hard fade as the (second half) focus turns to tariffs," according to Truist.

For the three-month period ended Feb. 1, the company's adjusted EPS fell to $3.48 from $3.65 the year before, but topped the average analyst estimate of $3.38. Sales advanced by 4% year over year to $1.39 billion, just ahead of the Street's view for $1.38 billion. Comparable sales decreased 3%, less than the 3.3% decline modeled by the market.

"We were pleased to end the year with fourth-quarter sales and EPS above our outlook," Chief Operating Officer Ken Bull said in the earnings statement. "We entered the holiday period with the goal of showcasing more newness with key trend-right, value product, while also improving our operational execution and in-store experience."