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Five Below Projected to Report Impressive First-Quarter EPS

Five Below Projected to Report Impressive First-Quarter EPS

Analysts expect the company’s gross margin to expand by 80 basis points to 32.5%. The company’s gross margin was flat at 41.1% for the fourth quarter of fiscal 2017 because higher incentive compensation costs nullified a positive impact from occupancy expense leverage. For fiscal 2018, the company projects a negative impact of 50 basis points to its operating margin due to ongoing investments in growth initiatives.