What happened

Shares of Five Below (NASDAQ:FIVE) gained 20.9% last month, according to data provided by S&P Global Market Intelligence.

The stock skyrocketed 54% in 2018 on the back of robust operating performance. In January, the company announced early results for the holiday quarter that showed momentum remaining strong. 

Three young girls taking a selfie while they shop.

Image source: Getty Images.

So what

Five Below is coming off a solid third quarter in which revenue jumped 22% year over year and earnings per share increased by an impressive 33%. 

For the holiday period, revenue growth slightly accelerated to 24.6% year over to reach $526.1 million. CEO Joel Anderson said: "We saw continued strong performance from our new stores, and comparable sales came in ahead of our expectations. Results were broad-based across many worlds, including Tech, Candy, Create, and Sports, where we successfully capitalized on the toy opportunity through an expanded selection of amazing value toys and games." 

Now what

Five Below expects to exceed sales guidance for the holiday period. Also, EPS is expected to come in at the high end of management's previous guidance for fourth-quarter earnings between $1.53 and $1.57 per share.

For the full year, the company expects to report sales between $1.55 billion and $1.557 billion, with comps growth of 3.3% to 3.7%. EPS is expected in the range of $2.60 to $2.64. 

At the midpoint of guidance, this represents revenue and earnings growth of 21.5% and 42%, respectively, over 2017. 

John Ballard has no position in any of the stocks mentioned. The Motley Fool recommends Five Below. The Motley Fool has a disclosure policy.