Shares of Five Below (FIVE) surged 11.34% in a 24-hour period following the release of the company's fourth-quarter financial results and optimistic outlook for the upcoming year. The discount retailer exceeded analyst expectations, demonstrating resilience in a challenging retail environment.

Five Below reported adjusted earnings per share of $3.48 for the fourth quarter, surpassing the analyst consensus of $3.38. While this represents a decrease from $3.65 in the same period last year, it still impressed investors. The company's net sales for the quarter reached $1.39 billion, up from $1.34 billion a year earlier and slightly above analyst estimates of $1.38 billion. Same-store sales declined by 3.0%, which was better than the expected 3.3% drop.

Adding to the positive sentiment, Five Below provided an upbeat outlook for both the first quarter and fiscal year 2025. For Q1, the company expects adjusted diluted EPS between $0.50 and $0.61, with net sales ranging from $905 million to $925 million. The full-year guidance projects adjusted diluted EPS between $4.10 and $4.72, with net sales expected to fall between $4.21 billion and $4.33 billion. These projections, along with the company's focus on product newness, value, and store experience, suggest continued growth and profitability for the retailer, contributing to the stock's significant rally.