What's happening: Shares of Five Below (NASDAQ:FIVE) fell as much as 10.5% early Thursday after the discount retailer announced weaker-than-expected fiscal-second-quarter revenue and guidance. At 11 a.m., the stock was down about 7% from the previous close.

Quarterly revenue rose 19.5% year over year to $182.5 million, helped by comparable-store sales growth of 3%, and an 18.1% increase in the total number of stores from the year-ago period to 417. For perspective, that top-line figure is near the low end of Five Below's guidance range provided three months ago, which called for revenue of $182 million to $185 million, and a 4% to 5% increase in comparable-store sales.

Operating income simultaneously decreased 12.8% to $11.6 million, albeit driven primarily by an expected deleverage related to Five Below's new distribution center, investments in leadership, and a shift in marketing expenses. Based on generally accepted accounting principles, that translated to a 14.4% decline in net income to $7.1 million, or $0.13 per diluted share.

Analysts, on average, were anticipating the same earnings of $0.13 per share, but on higher revenue of $184.7 million.

Why it's happening: Five Below CEO Joel Anderson blamed two temporary items during the middle of the quarter, including the elimination of a summer circular, and temporary store receipt delays as the company moved out of its East Coast distribution center.

"These one-time factors are behind us," insisted Anderson, "and we believe we are well positioned from a merchandising, marketing and distribution standpoint to deliver on our plans for the second half of the year ..."

As a result, Five Below anticipates current-quarter revenue of $164 million to $167 million, assuming the opening of 16 net new locations and a 3% to 4% increase in comps. GAAP net income should be in the range of $3.3 million to $4.0 million, and net income per diluted share should be $0.06 to $0.07. Analysts were anticipating fiscal third-quarter revenue of $167.5 million, and earnings of $0.08 per share.

Finally, Five Below reiterated full-year guidance for revenue of $820 million to $828 million, based on 70 net new stores and a 3% increase in comps. GAAP net income should be $56.4 million to $58.2 million, with diluted net income per share of $1.03 to $1.06. Wall Street was more optimistic, with consensus estimates calling fiscal 2015 revenue near the high end of Five Below's expected range at $826.8 million, and earnings of $1.07 per share.

In the end, while Five Below's long-term story appears to remain firmly intact, it's no surprise the market is taking a step back today.

Steve Symington has no position in any stocks mentioned. The Motley Fool is short Five Below. The Motley Fool recommends Five Below. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.