Business Corpus: Top Retailer's Earnings Could Have Extra Oomph In Q2 After Soggy Q1Five Below earnings are due after the close today as the discount retailer looks to rebound from a prior quarter that was held back by unseasonably wet weather. The post Top Retailer's Earnings Could Have Extra Oomph In Q2 After Soggy Q1 appeared first on Investor's Business Daily.

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IBD 50 stock Five Below (FIVE) — which sells $5 headphones, fake slime toys, room supplies and other items targeted toward teens and tweens — reports earnings after the close today. Check back here for updates.

Five Below Earnings

Estimates: Wall Street expects Q2 EPS of 38 cents, up 27% from a year ago, as revenue climbs 18% to $335 million. Consensus Metrix forecasts flat same-store sales.

Results: Coming after the close.

Five Below Stock

Shares of the discount retailer lost 0.5% to 114.23 in the stock market today after hitting a fresh record high on Tuesday. Ollie's Bargain Outlet (OLLI), which reported earnings Wednesday, was down 0.7%.

Overall, Five Below still carries a best-possible Composite Rating of 99 as the stock has more than doubled from a year ago. Other retailers have held onto similarly high ratings, after bouncing back from a difficult 2017.

Coincidentally, Five Below is also ranked No. 5 on the IBD 50 list of top-rated stocks.

Fidget Spinners, Other Items Lift Five Below Earnings

Discount chains have had better luck weathering the storm from online retailer Amazon (AMZN).

Five Below's stock has continued to rise, even as it faces more difficulty growing off strong results last year, when fidget spinners helped children and adults alike release pent-up nervous energy.

During Q1, unseasonably cold, wet weather kept total transactions at stores lower. But the company, when it reported those results in June, still offered an upbeat outlook for the year. Shares jumped on the news.

The company has said 50% of customers that bought fidget spinners last year were new to the chain, and that most returned. A supporting cast of other items has helped pick up the slack as the fidget-spinner trend waned, analysts have said.

Management has signaled that the demise of Toys 'R' Us, which has closed its U.S. stores, could also benefit the company.

"We've been introduced to several new vendors as the Toys 'R' Us transition's taken place," CEO Joel Anderson said during the company's Q1 earnings conference call in June.

A recent Credit Suisse analysis said that 47% of Five Below stores had "some overlap" with Toys 'R' Us stores within a five-mile radius. But other companies, like Walmart (WMT), Amazon, are also bulking up on toy offerings in a race to grab hold of the turf left behind by Toys 'R' Us.

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The post Top Retailer's Earnings Could Have Extra Oomph In Q2 After Soggy Q1 appeared first on Investor's Business Daily.