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  • Writer's pictureRealFacts Editorial Team

Retail Earnings Come In Mixed


five below sign

On Wednesday, Lululemon (LULU) reported strong earnings, resulting in a significant stock surge of approximately 12% in after-hours trading. The athleisure retailer's earnings rose by 11.4% to $2.54 per share, with net revenue increasing by 10% to $2.2 billion, slightly surpassing expectations. Despite a flat performance in the Americas, international comparable sales jumped by 25%. For the second quarter, Lululemon projects a sales increase of 9% to 10% and earnings ranging from $2.92 to $2.97 per share. While this outlook is slightly below Wall Street’s Q2 estimates, the full-year earnings forecast of $14.27 to $14.47 per share exceeds analyst expectations. Additionally, Lululemon authorized a $1 billion increase to its stock repurchase program, bolstering investor confidence.


In contrast, Five Below (FIVE) experienced a significant decline, with its stock plummeting about 12% in after-hours trading. The discount retailer reported a 15% decrease in earnings to 57 cents per share. Sales, however, increased by 11.8% to $811.9 million. The company’s guidance for the second quarter fell short of Wall Street's projections, forecasting earnings between 57 cents to 69 cents per share and sales ranging from $830 million to $850 million. For the full year, Five Below anticipates adjusted earnings of $5 to $5.40 per share on sales between $3.79 billion and $3.87 billion. The disappointing guidance contributed to the stock’s sharp decline, continuing a trend of poor performance in 2024.


Dollar Tree (DLTR) and Ollie’s Bargain Outlet (OLLI) also presented contrasting outcomes. Dollar Tree reported a slight decline in adjusted earnings to $1.43 per share, aligning with expectations, while sales increased by 4.2% to $7.63 billion. The company announced a strategic review of Family Dollar, potentially considering a sale or spinoff, and plans to close 970 underperforming Family Dollar stores. Dollar Tree’s guidance for the second quarter and full year was below expectations, contributing to a 4.9% drop in its stock. Meanwhile, Ollie’s Bargain Outlet reported a robust 49% increase in earnings to 73 cents per share, beating forecasts. Sales rose by 10.8% to $508.8 million, prompting an upward revision of its 2024 sales outlook. Ollie’s stock performance reflected investor optimism rallying 9.5% Wednesday.

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