Advertisement
U.S. markets closed
  • S&P 500

    5,088.80
    +1.77 (+0.03%)
     
  • Dow 30

    39,131.53
    +62.42 (+0.16%)
     
  • Nasdaq

    15,996.82
    -44.80 (-0.28%)
     
  • Russell 2000

    2,016.69
    +2.85 (+0.14%)
     
  • Crude Oil

    76.57
    -2.04 (-2.60%)
     
  • Gold

    2,045.80
    +15.10 (+0.74%)
     
  • Silver

    22.98
    +0.19 (+0.84%)
     
  • EUR/USD

    1.0823
    -0.0005 (-0.04%)
     
  • 10-Yr Bond

    4.2600
    -0.0670 (-1.55%)
     
  • GBP/USD

    1.2673
    +0.0015 (+0.12%)
     
  • USD/JPY

    150.4400
    -0.0600 (-0.04%)
     
  • Bitcoin USD

    51,495.06
    +361.91 (+0.71%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,706.28
    +21.79 (+0.28%)
     
  • Nikkei 225

    39,098.68
    +836.48 (+2.19%)
     

Five Below, Inc. Announces Third Quarter Fiscal 2023 Financial Results

Five Below, Inc.
Five Below, Inc.

Q3 Net Sales Increase of 14.2%

Q3 Comparable Sales Increase of 2.5% with a 3.1% Increase in Comparable Transactions

Raises Midpoint of Fiscal 2023 Guidance

PHILADELPHIA, PA , Nov. 29, 2023 (GLOBE NEWSWIRE) -- Five Below, Inc. (NASDAQ: FIVE) today announced financial results for the third quarter and year to date period ended October 28, 2023.

For the third quarter ended October 28, 2023:

  • Net sales increased by 14.2% to $736.4 million from $645.0 million in the third quarter of fiscal 2022; comparable sales increased by 2.5% versus the third quarter of fiscal 2022.

  • The Company opened 74 new stores and ended the quarter with 1,481 stores in 43 states. This represents an increase in stores of 14.6% from the end of the third quarter of fiscal 2022.

  • Operating income was $16.1 million compared to $20.9 million in the third quarter of fiscal 2022.

  • The effective tax rate was 25.4% compared to 24.6% in the third quarter of fiscal 2022.

  • Net income was $14.6 million compared to $16.1 million in the third quarter of fiscal 2022.

  • Diluted income per common share was $0.26 compared to $0.29 in the third quarter of fiscal 2022.

  • The Company repurchased approximately 500,000 shares in the third quarter of fiscal 2023 at a cost of approximately $80.0 million.

Joel Anderson, President and CEO of Five Below, said, "We are very pleased with our results and operational execution in the third quarter. We exceeded our guidance for sales, comparable sales and EPS, as our value offering resonated with customers and we effectively capitalized on multiple trends. We opened a record 74 new stores in the third quarter and are on track to open over 200 new stores for the year. We have also successfully converted over 400 stores to our new Five Beyond format, ending the third quarter with approximately 50% of our comparable store base in this format."

Mr. Anderson continued, "We entered the all-important holiday quarter ready to Wow our customers with an outstanding assortment of gifts and stocking stuffers at incredible value. We are well-positioned to execute this holiday season and deliver on our goals for the year."

For the year to date period ended October 28, 2023:

  • Net sales increased by 13.7% to $2.22 billion from $1.95 billion in the year to date period of fiscal 2022; comparable sales increased by 2.6% versus the year to date period of fiscal 2022.

  • The Company opened 141 new stores compared to 102 new stores in the year to date period of fiscal 2022.

  • Operating income was $117.1 million compared to $119.3 million in the year to date period of fiscal 2022.

  • The effective tax rate was 23.1% compared to 24.6% in the year to date period of fiscal 2022.

  • Net income was $98.9 million compared to $90.2 million in the year to date period of fiscal 2022.

  • Diluted income per common share was $1.78 compared to $1.62 in the year to date period of fiscal 2022. The benefit from share-based accounting was approximately $0.07 in the year to date period of fiscal 2023 compared to approximately $0.03 in the year to date period of fiscal 2022.

Fourth Quarter and Fiscal 2023 Outlook:
The Company expects the following results for the fourth quarter and full year fiscal 2023:

For the fourth quarter of Fiscal 2023:

  • Net sales are expected to be in the range of $1.32 billion to $1.35 billion based on opening over 60 new stores and assuming an approximate 2% to 3% increase in comparable sales.

  • Net income is expected to be in the range of $201 million to $211 million.

  • Diluted income per common share is expected to be in the range of $3.64 to $3.80 on approximately 55.4 million diluted weighted average shares outstanding.

For the full year of Fiscal 2023:

  • Net sales are expected to be in the range of $3.54 billion to $3.57 billion based on opening over 200 new stores and assuming an approximate 2.5% increase in comparable sales.

  • Net income is expected to be in the range of $300 million to $310 million.

  • Diluted income per common share is expected to be in the range of $5.40 to $5.56 on approximately 55.6 million diluted weighted average shares outstanding.

  • The 53rd week is expected to contribute approximately $40 million in sales and approximately $0.08 in diluted income per common share.

  • Gross capital expenditures are expected to be approximately $335 million in fiscal 2023.

Share Repurchase Program:
On November 27, 2023, the Company announced that the Board of Directors retired the Company’s current share repurchase program and approved a new share repurchase program authorizing the repurchase of up to $100 million of the Company’s common shares through November 27, 2026. The number of common shares actually repurchased, and the timing and price of repurchases, will depend upon market conditions, Securities and Exchange Commission requirements, and other factors. Shares may be repurchased from time to time on the open market, in privately negotiated transactions, or otherwise. Purchases may be started or stopped at any time without prior notice depending on market conditions and other factors.

Conference Call Information:

A conference call to discuss the financial results for the third quarter and year to date period of fiscal 2023 is scheduled for today, November 29, 2023, at 4:30 p.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial 412-902-6753 approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call will be available online at investor.fivebelow.com, where a replay will be available shortly after the conclusion of the call.

Forward-Looking Statements:

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which reflect management's current views and estimates regarding the Company's industry, business strategy, goals and expectations concerning its market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources, store count potential and other financial and operating information. Investors can identify these statements by the fact that they use words such as "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "future" and similar terms and phrases. The Company cannot assure investors that future developments affecting the Company will be those that it has anticipated. Actual results may differ materially from these expectations due to risks related to disruption to the global supply chain, risks related to the Company's strategy and expansion plans, risks related to disruptions in our information technology systems and our ability to maintain and upgrade those systems, risks related to the inability to successfully implement our online retail operations, risks related to cyberattacks or other cyber incidents, risks related to our ability to select, obtain, distribute and market merchandise profitably, risks related to our reliance on merchandise manufactured outside of the United States, the availability of suitable new store locations and the dependence on the volume of traffic to our stores, risks related to changes in consumer preferences and economic conditions, risks related to increased operating costs, including wage rates, risks related to inflation and increasing commodity prices, risks related to potential systematic failure of the banking system in the United States or globally, risks related to extreme weather, pandemic outbreaks, global political events, war, terrorism or civil unrest (including any resulting store closures, damage, or loss of inventory), risks related to leasing, owning or building distribution centers, risks related to our ability to successfully manage inventory balance and inventory shrinkage, quality or safety concerns about the Company's merchandise, increased competition from other retailers including online retailers, risks related to the seasonality of our business, risks related to our ability to protect our brand name and other intellectual property, risks related to customers' payment methods, risks related to domestic and foreign trade restrictions including duties and tariffs affecting our domestic and foreign suppliers and increasing our costs, including, among others, the direct and indirect impact of current and potential tariffs imposed and proposed by the United States on foreign imports, risks associated with the restrictions imposed by our indebtedness on our current and future operations, the impact of changes in tax legislation and accounting standards and risks associated with leasing substantial amounts of space. For further details and a discussion of these risks and uncertainties, see the Company's periodic reports, including the annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, filed with or furnished to the Securities and Exchange Commission and available at www.sec.gov. If one or more of these risks or uncertainties materialize, or if any of the Company's assumptions prove incorrect, the Company's actual results may vary in material respects from those projected in these forward-looking statements. Any forward-looking statement made by the Company in this news release speaks only as of the date on which the Company makes it. Factors or events that could cause the Company's actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.

About Five Below:
Five Below is a leading high-growth value retailer offering trend-right, high-quality products loved by tweens, teens and beyond. We believe life is better when customers are free to "let go & have fun" in an amazing experience filled with unlimited possibilities. With most items priced between $1 and $5, and some extreme value items priced beyond $5 in our incredible Five Beyond offering, Five Below makes it easy to say YES! to the newest, coolest stuff across eight awesome Five Below worlds: Style, Room, Sports, Tech, Create, Party, Candy and New & Now. Founded in 2002 and headquartered in Philadelphia, Pennsylvania, Five Below today has over 1,500 stores in 43 states. For more information, please visit www.fivebelow.com or find Five Below on Instagram, TikTok, X and Facebook @FiveBelow.

Investor Contact:
Five Below, Inc.
Christiane Pelz
Vice President, Investor Relations & Treasury
215-207-2658
InvestorRelations@fivebelow.com


FIVE BELOW, INC.
Consolidated Balance Sheets
(Unaudited)
(in thousands)

 

 

October 28, 2023

 

January 28, 2023

 

October 29, 2022

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

$

162,928

 

 

$

332,324

 

 

$

44,229

 

Short-term investment securities

 

 

 

 

66,845

 

 

 

72,722

 

Inventories

 

763,349

 

 

 

527,720

 

 

 

701,561

 

Prepaid income taxes and tax receivable

 

23,906

 

 

 

8,898

 

 

 

25,389

 

Prepaid expenses and other current assets

 

140,816

 

 

 

130,592

 

 

 

113,147

 

Total current assets

 

1,090,999

 

 

 

1,066,379

 

 

 

957,048

 

Property and equipment, net

 

1,075,275

 

 

 

925,530

 

 

 

880,469

 

Operating lease assets

 

1,475,095

 

 

 

1,319,132

 

 

 

1,312,437

 

Other assets

 

16,069

 

 

 

13,870

 

 

 

13,761

 

 

$

3,657,438

 

 

$

3,324,911

 

 

$

3,163,715

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Line of credit

$

 

 

$

 

 

$

 

Accounts payable

 

349,340

 

 

 

221,120

 

 

 

279,836

 

Income taxes payable

 

 

 

 

19,928

 

 

 

 

Accrued salaries and wages

 

19,357

 

 

 

25,420

 

 

 

14,140

 

Other accrued expenses

 

158,272

 

 

 

136,316

 

 

 

152,260

 

Operating lease liabilities

 

231,197

 

 

 

199,776

 

 

 

193,614

 

Total current liabilities

 

758,166

 

 

 

602,560

 

 

 

639,850

 

Other long-term liabilities

 

4,625

 

 

 

4,296

 

 

 

4,307

 

Long-term operating lease liabilities

 

1,455,358

 

 

 

1,296,975

 

 

 

1,293,692

 

Deferred income taxes

 

61,364

 

 

 

59,151

 

 

 

41,378

 

Total liabilities

 

2,279,513

 

 

 

1,962,982

 

 

 

1,979,227

 

Shareholders’ equity:

 

 

 

 

 

Common stock

 

551

 

 

 

555

 

 

 

555

 

Additional paid-in capital

 

177,877

 

 

 

260,784

 

 

 

254,663

 

Retained earnings

 

1,199,497

 

 

 

1,100,590

 

 

 

929,270

 

Total shareholders’ equity

 

1,377,925

 

 

 

1,361,929

 

 

 

1,184,488

 

 

$

3,657,438

 

 

$

3,324,911

 

 

$

3,163,715

 




FIVE BELOW, INC.
Consolidated Statements of Operations
(Unaudited)
(in thousands, except share and per share data)

 

 

Thirteen Weeks Ended

 

Thirty-Nine Weeks Ended

 

October 28, 2023

 

October 29, 2022

 

October 28, 2023

 

October 29, 2022

Net sales

$

736,405

 

 

$

645,034

 

 

$

2,221,633

 

 

$

1,953,557

 

Cost of goods sold

 

513,577

 

 

 

437,226

 

 

 

1,499,422

 

 

 

1,310,463

 

Gross profit

 

222,828

 

 

 

207,808

 

 

 

722,211

 

 

 

643,094

 

Selling, general and administrative expenses

 

206,705

 

 

 

186,874

 

 

 

605,082

 

 

 

523,820

 

Operating income

 

16,123

 

 

 

20,934

 

 

 

117,129

 

 

 

119,274

 

Interest income and other income

 

3,434

 

 

 

483

 

 

 

11,423

 

 

 

341

 

Income before income taxes

 

19,557

 

 

 

21,417

 

 

 

128,552

 

 

 

119,615

 

Income tax expense

 

4,963

 

 

 

5,271

 

 

 

29,645

 

 

 

29,407

 

Net income

$

14,594

 

 

$

16,146

 

 

$

98,907

 

 

$

90,208

 

Basic income per common share

$

0.26

 

 

$

0.29

 

 

$

1.78

 

 

$

1.62

 

Diluted income per common share

$

0.26

 

 

$

0.29

 

 

$

1.78

 

 

$

1.62

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic shares

 

55,452,533

 

 

 

55,509,525

 

 

 

55,592,536

 

 

 

55,551,382

 

Diluted shares

 

55,576,140

 

 

 

55,683,609

 

 

 

55,717,987

 

 

 

55,720,792

 



FIVE BELOW, INC.
Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)

 

 

Thirty-Nine Weeks Ended

 

October 28, 2023

 

October 29, 2022

Operating activities:

 

 

 

Net income

$

98,907

 

 

$

90,208

 

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

Depreciation and amortization

 

93,652

 

 

 

76,698

 

Share-based compensation expense

 

13,366

 

 

 

18,117

 

Deferred income tax expense

 

2,213

 

 

 

5,222

 

Other non-cash expenses

 

172

 

 

 

364

 

Changes in operating assets and liabilities:

 

 

 

Inventories

 

(235,629

)

 

 

(246,457

)

Prepaid income taxes and tax receivable

 

(15,008

)

 

 

(14,064

)

Prepaid expenses and other assets

 

(12,530

)

 

 

(21,787

)

Accounts payable

 

123,374

 

 

 

79,046

 

Income taxes payable

 

(19,928

)

 

 

(28,096

)

Accrued salaries and wages

 

(6,063

)

 

 

(39,399

)

Operating leases

 

33,841

 

 

 

27,271

 

Other accrued expenses

 

15,521

 

 

 

7,895

 

Net cash provided by (used in) operating activities

 

91,888

 

 

 

(44,982

)

Investing activities:

 

 

 

Purchases of investment securities and other investments

 

(128,950

)

 

 

(31,815

)

Sales, maturities, and redemptions of investment securities

 

195,795

 

 

 

273,951

 

Capital expenditures

 

(231,921

)

 

 

(173,589

)

Net cash (used in) provided by investing activities

 

(165,076

)

 

 

68,547

 

Financing activities:

 

 

 

Cash paid for Revolving Credit Facility financing costs

 

 

 

 

(248

)

Net proceeds from issuance of common stock

 

440

 

 

 

464

 

Repurchase and retirement of common stock

 

(80,541

)

 

 

(40,007

)

Proceeds from exercise of options to purchase common stock and vesting of restricted and performance-based restricted stock units

 

288

 

 

 

111

 

Common shares withheld for taxes

 

(16,395

)

 

 

(4,629

)

Net cash used in financing activities

 

(96,208

)

 

 

(44,309

)

Net decrease in cash and cash equivalents

 

(169,396

)

 

 

(20,744

)

Cash and cash equivalents at beginning of period

 

332,324

 

 

 

64,973

 

Cash and cash equivalents at end of period

$

162,928

 

 

$

44,229

 



Advertisement