Five Below (NASDAQ: FIVE) reported Q2 EPS of $0.53, $0.39 better than the analyst estimate of $0.14. Revenue for the quarter came in at $426.1 million versus the consensus estimate of $405.83 million.

For the second quarter ended August 1, 2020:Due to the COVID-19 pandemic, the Company temporarily closed all of its stores as of March 20, 2020. These stores began to reopen in late April 2020 in compliance with federal, state and local requirements. As of the end of June, the Company had reopened substantially all of its stores to the general public. The results in the second quarter reflect the impact of store closures and reopenings.

• Net sales increased by 2.1% to $426.1 million from $417.4 million in the second quarter of fiscal 2019.
• Reopened period comparable sales (defined below) increased approximately 6%, with stores increasing approximately 4% and e-commerce contributing approximately 2% to the comparable sales increase. Comparable sales for the full second quarter decreased by 12.2%, driven by a 19% decrease in comparable operating days.
• The Company opened 62 net new stores and ended the quarter with 982 stores in 38 states. This represents an increase in stores of 17.9% from the end of the second quarter of fiscal 2019.
• Operating income was $33.1 million compared to $36.0 million in the second quarter of fiscal 2019.
• The effective tax rate was 9.4% compared to 23.2% in the second quarter of fiscal 2019.
• Net income was $29.6 million compared to $28.8 million in the second quarter of fiscal 2019.
• Diluted income per common share was $0.53 compared to $0.51 in the second quarter of fiscal 2019. The benefit from share-based accounting was approximately $0.03 in the second quarter of fiscal 2020 compared to $0.01 in the second quarter of fiscal 2019.

Joel Anderson, President and CEO, said, “I am proud of the execution of the entire Five Below team and the results we delivered against a challenging backdrop. We swiftly responded to new and changing operating conditions – safely reopening our chain while opening 63 new stores across 24 states, accelerating our digital strategy, and ensuring the relevance of our merchandise assortment and marketing messages to reflect the current environment, including a focus on essential items. In addition, we simultaneously made significant strides on the foundational initiatives that underpin our growth strategy, namely in people, systems and infrastructure, to drive long-term, sustainable growth.”

Mr. Anderson continued, “The third quarter is off to a strong start and we are focused on the all-important holiday season. The work we have done in preparing our stores for a safe and efficient customer experience, as well as our expanded digital capabilities, is serving us well. Our teams are quickly adapting and constantly innovating to ensure that we continue to delight customers with amazing Wow product at incredible values and we feel good about our positioning for the second half of the year."

Reopened Period Comparable Sales: "Reopened period comparable sales" represents the sales change for comparable stores for the days those stores were open in the second quarter against sales for the same days in the prior year, together with the change in sales for e-commerce for the full second quarter.

Third Quarter and Fiscal 2020 Outlook: Given the uncertainty related to COVID-19, the Company will not be providing sales or earnings guidance for the third quarter or fiscal 2020. The Company expects to open 110 to 120 net new stores in 2020.

For earnings history and earnings-related data on Five Below (FIVE) click here.