05:03 PM EST, 12/04/2024 (MT Newswires) -- Five Below ( FIVE ) late Wednesday reported a surprise increase in fiscal third-quarter earnings as revenue rose above analysts' estimates, while the discount retailer appointed Forever 21 head as its chief executive.

Adjusted per-share earnings rose to $0.42 during the three months to Nov. 2 from $0.26 a year earlier, versus Wall Street's views that called for a drop to $0.17. Sales advanced 15% to $843.7 million, above analysts' $803.9 million estimate.

Shares were rallying 12% in after-hours trade.

Five Below ( FIVE ) said that Winnie Park will become CEO and a board member, effective Dec. 16. Park has been leading fashion retailer Forever 21 since January 2022.

For the key holiday quarter, Five Below ( FIVE ) expects adjusted EPS of $3.23 to $3.41 on revenue between $1.35 billion and $1.38 billion. The FactSet-polled consensus estimates are for $3.29 in non-GAAP EPS and $1.36 billion in revenue.

"Our solid Black Friday weekend results were an encouraging start to the holiday season, though the highest volume selling days lie ahead," Ken Bull, interim CEO who will continue as chief operating officer, said in a statement. "In addition, this year we have five fewer shopping days between Thanksgiving and Christmas, which is reflected in our outlook."

The company projects adjusted EPS of $4.78 to $4.96 this year, up from $4.35 to $4.71 previously expected. Revenue is seen at $3.84 billion to $3.87 billion, compared with prior expectations for $3.73 billion to $3.8 billion.

Consensus estimates call for full-year adjusted EPS of $4.59 and revenue of $3.8 billion.