Total Sales Increased 15.6%; Comparable Sales Increased 3.6% Reiterates Fourth Quarter and Full Year Fiscal 2023 Guidance, with Net Sales in the Upper Half of the Range and Comparable Sales of Approximately 3% PHILADELPHIA, PA, Jan. 08, 2024 (GLOBE NEWSWIRE) -- Five Below, Inc. (NASDAQ:FIVE) ("Five Below" or the "Company") today announced net sales results for the quarter-to-date period from October 29, 2023 through January 6, 2024 ("Holiday Period"). The Company expects fourth quarter and full year fiscal ...

Financial Data and Key Metrics - Sales for Q3 2023 increased by 14.2% to $736.4 million compared to $645 million in Q3 2022 [3] - SG&A as a percentage of sales decreased by 90 basis points to 28.1% in Q3 2023, driven by timing of marketing spend and leverage on store-related expenses [4] - Full-year 2023 sales guidance increased to $3.54 billion to $3.57 billion, representing a growth of 15.1% to 16% [6] - Diluted earnings per share for Q3 2023 were $0.26, compared to $0.29 in Q3 2022 [38] - Operating margin for Q4 2023 is expected to be between 20.5% and 20.8%, with a 50 basis point leverage due to freight benefits and cost management strategies [39] - Diluted earnings per share for the full year are expected to be in the range of $5.40 to $5.56, implying year-over-year growth of 15.1% to 18.6% [40] Business Line Performance - The Five Beyond format now accounts for approximately 50% of the comparable store base, driving mid-single-digit comp outperformance in the first year post-conversion [85][93] - The company opened a record 74 new stores in Q3 2023, bringing the total store count to 1,481, a 15% increase from Q3 2022 [112] - Comparable sales increased by 2.5% in Q3 2023, driven by a 3.1% increase in comp transactions, partially offset by a 0.6% decrease in comp ticket [111] - The company expects to open over 60 stores in Q4 2023, with 43 already opened in November [114] Market Performance - The company saw strong performance in discretionary categories such as games, toys, and seasonal offerings, particularly Halloween products [88] - The company's online presence remains low, with minimal impact from competitors like Temu [36] - The company's value proposition continues to resonate with customers, particularly during the holiday season, with strong transaction growth from both new and returning customers [7] Strategic Direction and Industry Competition - The company's Triple-Double strategy focuses on store expansion, store potential, product and brand strategy, inventory optimization, and crew innovation [89] - The company is leveraging its Five Beyond format to attract new customers and retain existing ones, with plans to continue converting stores in 2024 [94] - The company is investing in social media platforms like TikTok, Facebook, Instagram, and YouTube to increase brand awareness and customer engagement [96] - The company is focused on improving inventory productivity through advanced processes, technology, and analytics, positioning it well for the holiday season [97][98] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to leverage at the 3% level and expects to provide more details on future growth during the March call [9] - The company is pleased with the start of Q4 2023, with strong transaction growth and new store performance in line with expectations [7] - Management highlighted the importance of value and trend-right products, particularly during the holiday season, and expects to see continued growth in discretionary categories [135] - The company is focused on mitigating shrink and expects to provide updates on progress at year-end [105] Other Important Information - The company repurchased approximately 500,000 shares in Q3 2023 at an average price of $158.63, totaling approximately $80 million [104] - The company ended Q3 2023 with $163 million in cash, cash equivalents, and investments, with no debt outstanding [104] - The company expects to spend approximately $335 million in gross CapEx for 2023, including new store openings, distribution center expansions, and technology investments [145] Q&A Session Summary Question: Performance of Five Beyond stores in year two - The company noted that early signals from stores entering year two show positive comps, with more stores expected to enter year two in Q4 [119] - The company expects continued growth in Five Beyond penetration, which will benefit top-line sales [94] Question: Impact of deflationary trends on product costs - Management expects deflationary trends in product costs to benefit gross margins, allowing the company to reinvest in product quality [132] Question: Competitive landscape and positioning - The company believes its value proposition and focus on trend-right products differentiate it from competitors, particularly in the mass channel [62] Question: Real estate costs and store growth outlook - The company noted that real estate costs have stabilized, with rents remaining flat and the pipeline for new stores strong for 2024 and 2025 [68][163] Question: Impact of Temu on the business - The company has not seen a significant impact from Temu due to its low online penetration and strong in-store value proposition [36][172] Question: Holiday season expectations - Management expressed confidence in the holiday season, citing strong inventory levels and a focus on value and trend-right products [157] Question: Long-term growth and margin expansion - The company reiterated its Triple-Double strategy, aiming for 14% operating margin over the long term, with 100 basis points of margin expansion annually [41]

Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock FIVE The Nasdaq Stock Market LLC UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (mark one) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 28, 2023. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Form 10-Q For the transition period from to Commission file number: 00 ...

Financial Data and Key Metrics Changes - Company reported Q2 2023 sales growth of over 13% to $759 million, with a comparable sales increase of 2.7% driven by transactions [96][132] - Diluted earnings per share increased approximately 14% to $0.84, reflecting strong financial performance [97][134] - Gross profit for Q2 2023 was up 15.8% to $264.6 million, with gross margin increasing by approximately 70 basis points to 34.9% due to lower inbound freight costs [133] Business Line Data and Key Metrics Changes - The company saw notable product performance in categories such as Squish, Hello Kitty, Anime, and consumables including candy and snacks [97][120] - The introduction of Barbie-related items capitalized on the movie's release, showcasing the company's ability to quickly adapt to trends [98][120] Market Data and Key Metrics Changes - The company opened 40 new stores across 24 states in Q2 2023, contributing to a total of 1,407 stores, a 12% increase year-over-year [159] - Inventory levels at the end of Q2 were $544 million, down from $569 million the previous year, with average inventory per store decreasing approximately 15% [161] Company Strategy and Development Direction - The company aims to open over 200 new stores in 2023, with a strong pipeline for 2024, indicating aggressive growth plans [99][122] - The focus on product and brand strategy includes integrating data analytics into marketing efforts to better understand customer cohorts [102][121] - The company is enhancing its inventory optimization strategies to improve efficiency and reduce costs [126] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macro pressures affecting customers and anticipated higher shrink levels, adjusting guidance accordingly [106][136] - The company is optimistic about the upcoming holiday season, with a strong product lineup and marketing strategies in place [105][121][88] Other Important Information - The company is conducting interim physical inventory counts to assess shrink levels and has increased reserves to reflect higher anticipated shrink rates [137][164] - SG&A expenses increased approximately 140 basis points to 27.1% due to normalized incentive compensation and planned marketing expenses [112] Q&A Session Summary Question: What portion of the operating margin change is attributable to shrink reserves? - Management indicated that the 20 basis point decline in operating margin is primarily due to changes in shrink reserves [170][173] Question: Can you elaborate on the ticket and price points? - Management noted that comp sales are driven by transactions rather than price increases, with only slight changes in average unit retail price [151][178] Question: What is the outlook for inventory management? - Management expressed confidence in improving inventory turnover and ensuring the right inventory is in the right place at the right time [194]

Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock FIVE The Nasdaq Stock Market LLC Pennsylvania 75-3000378 (State or Other Jurisdiction of Incorporation or Organization)(I.R.S. Employer Identification No.) (215) 546-7909 (Registrant's Telephone Number, Including Area Code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for s ...

Five Below, Inc. (NASDAQ:FIVE) Q1 2023 Earnings Conference Call June 1, 2023 4:30 PM ET Company Participants Christiane Pelz - Vice President of Investor Relations & Treasury Joel Anderson - President & Chief Executive Officer Kenneth Bull - Chief Operating Officer & Chief Financial Officer Conference Call Participants Simeon Gutman - Morgan Stanley Scot Ciccarelli - Truist Matthew Boss - JPMorgan David Bellinger - ROTH MKM John Heinbockel - Guggenheim Securities Edward Kelly - Wells Fargo Jason Haas - Bank ...

Store Operations - As of April 29, 2023, the company operated 1,367 stores across 43 states[71] - Total stores at the end of the period reached 1,367, up from 1,225[90] - From January 29, 2023, to April 29, 2023, the company entered into 95 new retail leases with average terms of approximately 10 years, resulting in future minimum lease payments of approximately $154.3 million[115] Financial Performance - Net sales increased to $726.2 million for the thirteen weeks ended April 29, 2023, up from $639.6 million, representing a 13.5% increase[90] - Gross profit rose to $234.8 million, an increase of $28.0 million or 13.6%, with a consistent gross margin of 32.3%[91] - Selling, general and administrative expenses increased to $192.4 million, up 17.0% from $164.4 million, with expenses as a percentage of net sales rising to 26.5%[92] - Net income increased to $37.5 million, a rise of 14.5% from $32.7 million[94] - Cash provided by operating activities was $85.3 million, an increase of $43.2 million compared to the prior year[104] - Comparable sales increased by 2.7%, driven by a 3.9% increase in the number of transactions[90] Sales and Revenue - The company reported that net sales are typically highest in the fourth fiscal quarter due to the year-end holiday season[75] - Comparable sales include net sales from stores open for at least 15 full months and e-commerce sales, with variations in calculation methods compared to competitors[76] - The company expects a significant percentage of net sales to continue coming from new stores not included in comparable sales[79] - E-commerce sales, including shipping and handling revenue, are included in net sales and comparable sales[72] Expenses and Costs - Gross profit is calculated as net sales minus cost of goods sold, with gross margin being gross profit as a percentage of net sales[80] - Selling, general and administrative (SG&A) expenses are expected to increase in future periods due to ongoing store growth[84] - Operating income is used as an indicator of business productivity and ability to manage SG&A expenses[85] Risks and Challenges - The company faces risks including inflation, supply chain disruptions, and increased operating costs that could adversely affect financial performance[67] - The company believes the impact of inflation on its historical results has been immaterial, and it seeks to minimize inflation effects through vendor sourcing and product mix changes[122] Capital Expenditures and Financing - The company plans to make cash capital expenditures of approximately $335 million in fiscal 2023, primarily for new store openings[101] - Net cash used in investing activities was $66.5 million, an increase of $123.9 million compared to the prior year[105] - As of April 29, 2023, the company had no borrowings under the Revolving Credit Facility and approximately $225 million available[111] - The Revolving Credit Facility provides a secured asset-based revolving line of credit of up to $225 million, with interest rates for SOFR loans ranging from 1.12% to 1.50%[109] - The Credit Agreement includes customary covenants that limit the company's ability to pay cash dividends, incur debt, and enter into certain transactions without lender approval[109] - The company has a variable interest rate exposure due to the Revolving Credit Facility, which could materially impact consolidated statements of operations if material borrowings occur[120] - The Second Amendment to the Credit Agreement replaced LIBOR provisions with SOFR provisions, converting outstanding LIBOR loans into SOFR loans[109] - The Credit Agreement allows for an increase of the Revolving Credit Facility by up to $150 million, subject to certain conditions[109]

Five Below, Inc. (NASDAQ:FIVE) Q4 2022 Earnings Conference Call March 15, 2023 4:30 PM ET Company Participants Christiane Pelz - Vice President, Investor Relations & Treasury Joel Anderson - President and Chief Executive Officer Kenneth Bull - Chief Operating Officer and Chief Financial Officer Conference Call Participants Simeon Gutman - Morgan Stanley Matthew Boss - JPMorgan Seth Sigman - Barclays John Heinbockel - Guggenheim Chuck Grom - Gordon Haskett Scot Ciccarelli - Truist Michael Lasser - UBS Edward ...

During the past five fiscal years, we have not declared, and currently do not plan to declare in the foreseeable future, dividends on shares of our common stock. Any further determination to pay dividends on our capital stock will be at the discretion of our Board of Directors, subject to applicable laws, and will depend on our financial condition, results of operations, capital requirements, general business conditions and other factors that our Board of Directors considers relevant. In addition, the terms ...

Five Below, Inc. (NASDAQ:FIVE) Q3 2022 Earnings Call Transcript November 30, 2022 4:30 PM ET Company Participants Christiane Pelz - VP, IR Joel Anderson - President & CEO Ken Bull - CFO Conference Call Participants Kathy Burns - JPMorgan Simeon Gutman - Morgan Stanley John Heinbockel - Guggenheim Scot Ciccarelli - Truist Brian Nagel - Oppenheimer Paul Lejuez - Citi Edward Kelly - Wells Fargo Jason Haas - Bank of America Jeremy Hamblin - Craig Hallum Eric Cohen - Gordon Haskett Anthony Chukumba - Loop Capita ...