Five Below Inc ( FIVE ) shares are trading higher Thursday after the company reported better-than-expected financial results for the fourth quarter and issued strong first-quarter guidance.

What Happened: Five Below ( FIVE ) reported fourth-quarter revenue of $1.391 billion, beating analyst estimates of $1.386 billion, according to Benzinga Pro. The retailer reported fourth-quarter adjusted earnings of $3.48 per share, beating estimates of $3.38 per share.

Total revenue was up 4% year-over-year, while comparable sales decreased 3% year-over-year. Five Below ( FIVE ) opened 22 new stores in the fourth quarter, bringing total locations up to 1,771. The company ended the period with $331.72 million in cash and cash equivalents.

“We were pleased to end the year with fourth quarter sales and EPS above our outlook. 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. We were very encouraged to see early positive results from our teams’ efforts,” said Ken Bull, COO of Five Below ( FIVE ).

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Guidance: Five Below ( FIVE ) expects first-quarter revenue to be in the range of $905 million to $925 million versus estimates of $898.08 million. The company anticipates first-quarter adjusted earnings of 50 to 61 cents per share versus estimates of 49 cents per share. 

Five Below ( FIVE ) anticipates full-year 2025 revenue of $4.21 billion to $4.33 billion versus estimates of $4.27 billion. The company expects full-year adjusted earnings to be between $4.10 and $4.72 per share versus estimates of $5.06 per share. Five Below’s guidance includes the expected impact of tariffs currently in place.

Analyst Changes: Multiple analysts lowered price targets following the print.

Morgan Stanley analyst Simeon Gutman maintained an Equal-Weight and lowered the price target from $120 to $110.

BofA Securities analyst Melanie Nunez maintained an Underperform and lowered the price target from $88 to $75.

Truist Securities analyst Scot Ciccarelli maintained a Hold and lowered the price target from $93 to $86.

FIVE Price Action: Five Below ( FIVE ) shares were up 6.23% at $80.30 at the time of publication, according to Benzinga Pro.