Five Below's shares dropped -10.6% June 6th after missing Wall Street's first-quarter revenue estimates and providing disappointing guidance.

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The retailer projected current quarter revenue between $830 million and $850 million, falling short of analysts' expectations of $883 million.

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Joel Anderson, President and CEO, commented on the results, "While our first quarter sales were disappointing, disciplined cost management enabled us to deliver adjusted EPS within our earnings outlook."

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He noted that needs-based items performed well but acknowledged the overall decline in comparable sales, attributing it to the challenging macro environment affecting lower-income customers.

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Looking ahead, Five Below's second-quarter guidance anticipates EPS to be between $0.57 and $0.69, starkly lower than the analyst consensus of $0.99.

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Revenue forecasts for the second quarter are set at $830 million to $850 million, also below the expected $883 million.

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