Shares of discount retailer Five Below (NASDAQ: FIVE) soared on Thursday after the company released financial results for the third quarter of 2022 and issued guidance for the fourth quarter that surprised Wall Street. As of 1:45 p.m. ET today, Five Below stock was up 14%.

In the third quarter, Five Below generated net sales of $645 million. On one hand, this looks good: Revenue was up 6.2% year over year and trounced management's most-optimistic forecast of $619 million. On the other hand, same-store sales (comps) -- a crucial metric for retail stocks -- dropped 2.7% from last year. Comps are also down 4.1% year to date.

Turning to the bottom line, Five Below's third-quarter results were also better than expected but down from last year. The company earned $16.1 million in net income, down from $24.2 million in the same quarter last year but far better than the $4 million to $11 million guided for by management.

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Source Fool.com