Shopify, Five Below: After-Hours Movers

Ladies and gentlemen, buckle up! We've got two major players in the retail and e-commerce space making waves after hours, and you need to pay attention. Shopify and Five Below just dropped their earnings reports, and the market is buzzing with excitement. Let's dive in and see what's shaking up the after-hours trading!



First up, Shopify! This e-commerce giant just reported a 31% year-over-year revenue growth to $2.81 billion in Q4 2024. That's right, folks, 31%! Their net income skyrocketed to $1.29 billion, or $0.99 per share, compared to $657 million, or $0.51 per share, last year. And get this—their adjusted EPS was $0.44. This is a company on fire, and the market is taking notice. Shopify's earnings beat and strong revenue growth suggest positive market sentiment and investor confidence. The company expects revenue to grow at a mid-twenties percentage rate on a year-over-year basis in Q1 2025. This is a no-brainer—Shopify is the Taylor Swift of e-commerce, and you need to own this stock!

Now, let's talk about Five Below. This discount retailer reported a net sales increase of 7.8% to $1.39 billion in Q4 2024. While that's impressive, their comparable sales decreased by 3.0%, which is a red flag. The company opened 22 net new stores and ended the quarter with 1,771 stores in 44 states. Operating income was $246.8 million compared to $268.4 million in the fourth quarter of fiscal 2023. Adjusted operating income was $253.3 million or a decrease of 1.5% when excluding the impact of the 53rd week in fiscal 2023. Diluted income per common share was $3.39 compared to $3.65 in the fourth quarter of fiscal 2023. Adjusted diluted income per common share was $3.48 or a decrease of 0.6% when excluding the impact of the 53rd week in fiscal 2023. For the fiscal year ended February 1, 2025, net sales increased by 8.9% to $3.88 billion from $3.56 billion in fiscal 2023, or an increase of 10.4% when excluding the impact of the 53rd week in fiscal 2023. Comparable sales decreased by 2.7%. The company opened 227 net new stores compared to 204 net new stores in fiscal 2023. Operating income was $323.8 million compared to $385.6 million in fiscal 2023. Adjusted operating income was $356.1 million or a decrease of 4.8% when excluding the impact of the 53rd week in fiscal 2023. Diluted income per common share was $4.60 compared to $5.41 in fiscal 2023. Adjusted diluted income per common share was $5.04 or a decrease of 4.2% when excluding the impact of the 53rd week in fiscal 2023. Five Below's outlook for the first quarter and fiscal 2025, with expected net sales increases of 19% and 16% respectively, and EPS increases of 19% and 15%, may have provided some reassurance to investors, but the overall market reaction would depend on how these expectations are perceived in comparison to the company's past performance and industry benchmarks.



So, what does this all mean for you, the investor? Shopify is a clear winner here, with its strong earnings and revenue growth. This is a company that's not just keeping up with the market—it's blowing past it. Five Below, on the other hand, has some challenges to overcome. While their net sales are up, the decrease in comparable sales is a concern. You need to keep an eye on this one and see if they can turn things around.

In conclusion, Shopify is the stock to own right now. It's a growth machine, and you don't want to miss out on this opportunity. Five Below, while showing some promise, needs to address its comparable sales issues before it can truly take off. Stay tuned for more updates, and remember—this is a market that rewards the bold and punishes the timid. So, get out there and make some money!