Five Below, the discount retailer, announced that its sales exceeded internal expectations in the third quarter of its fiscal year. Despite a decline in profit due to higher expenses, the company reported net income of $14.6 million, or 26 cents per share, for the three months ended October 28. This compares to $16.1 million, or 29 cents per share, during the same period last year. The earnings per share of 26 cents beat analysts' forecast of 22 cents.

The company had previously projected a profit range of $10 million to $14 million and earnings per share between 17 and 25 cents. However, it outperformed these estimates by achieving a 14% increase in sales, reaching a total of $736.4 million. This surpassed both management's expectations of $715 million to $730 million and analysts' predictions of $728 million.

To support its growth, Five Below's selling, general, and administrative expenses rose by 11% to $206.7 million. Despite this increase, the company was able to deliver strong sales results.

In a separate announcement, Dollar Tree also reported a drop in profit for the third quarter due to rising costs impacting margins.

Overall, Five Below's solid sales performance in Q3 demonstrates its continued success in the discount retail market.

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