Five Below Inc (NASDAQ:FIVE) stock plunges 11.56% (As on Sep 2, 11:05:45 AM UTC-4, Source: Google Finance) after the company posted mixed results for the second quarter of FY 21. The Company opened 34 new stores and ended the second quarter with 1,121 stores in 39 states. This represents an increase in stores of 14.2% from the end of the second quarter of fiscal 2020. New store growth continued with the opening of 34 new stores across 19 states, bringing the new store count for the first half to a record 102 new stores. Operating income was $86.2 million compared to $33.1 million in the second quarter of fiscal 2020. Operating income expanded by 139.2% from $36.0 million in the second quarter of fiscal 2019. The company has reported net income of $64.8 million compared to $29.6 million in the second quarter of fiscal 2020. Net income rose by 124.9% from $28.8 million in the second quarter of fiscal 2019.

FIVE in the second quarter of FY 21 has reported the adjusted earnings per share of $1.15, beating the analysts’ estimates for the adjusted earnings per share of $1.11, according to analysts surveyed by Zacks Investment Research. The company had reported the adjusted revenue growth of 51.7 percent to $646.6 million in the second quarter of FY 21, missing the analysts’ estimates for revenue of $658.2 million. The comparable sales grew by 39.2% versus the second quarter of fiscal 2020. For the comparable subset of stores that were open in both the second quarter of fiscal 2019 and the second quarter of fiscal 2021, sales increased 21%.

For the third quarter ending in November, Five Below expects revenue to be in the range of $550 million to $565 million. The analysts surveyed by Zacks had expected revenue of $543.7 million. This forecast is based on opening approximately 40 to 45 new stores and assuming a mid-single digit increase in comparable sales. For the third quarter, net income is expected to be in the range of $12.8 million to $16.7 million and diluted income per common share is expected to be in the range of $0.23 to $0.30 on approximately 56.4 million diluted weighted average shares outstanding. Due to the uncertainty related to COVID-19, potential future shifts in consumer spending, and ongoing global supply chain disruption, the Company has not be provided sales or earnings guidance for the full year of fiscal 2021.