Shares of Five Below climbed after the low-cost retailer issued an upbeat outlook on the year ahead and posted a narrower-than-expected decline in same-store sales in its fiscal fourth quarter.

The stock rose 11.9% to $84.55 in after-hours trading Wednesday. Shares have tumbled 64% in the past year.

The Philadelphia-based company's mid-2024 reset, which focused on emphasizing new products and optimizing labor and workflows, resulted in a better-than-expected end to the year, Chief Operating Officer Ken Bull said on a call with analysts. That momentum is anticipated to continue into fiscal 2025.

While Five Below's profit outlook for the current year missed analyst expectations, the midpoint of its revenue guidance came in above Wall Street's estimates. Chief Financial Officer Kristy Chipman said the company's outlook was hurt by President Trump's recently enacted tariffs, primarily due to about 60% of its total cost of goods being imported from China.

The company is taking steps to limit the effects of tariffs, including "vendor collaboration, selective price adjustments primarily within our $1 to $5 price points, diversification of sourcing and increasing our focus on product newness," Chipman said.

Five Below's outlook came as the company logged lower profit in its most recent quarter ended Feb. 1. The company posted better-than-expected adjusted earnings and higher revenue that was in line with analyst models.

Same-store sales fell 3.0%, which was better than the 3.3% decline expected by Wall Street, according to FactSet.