Core Insights - Five Below has appointed a Chief Marketing Officer (CMO) to enhance product promotion and meet customers online [1] - The company is focusing on building brand awareness and expanding its social media efforts to align with changing shopping behaviors [2] - Positive results from the business reset strategy indicate attractive growth opportunities [3] Marketing Strategy - The CMO's role will involve promoting new products and enhancing customer engagement through online platforms [1][2] - Five Below aims to provide a "treasure hunt" shopping experience by keeping product assortments fresh and relevant [4] Business Reset and Performance - Since the business reset began, sales and adjusted earnings per share have exceeded the high end of guidance [5] - The reset strategy emphasizes product, value, and store experience, initiated eight months ago [2][3] Tariff Impact and Mitigation - The company is addressing challenges posed by tariffs, with 60% of its total cost of goods imported from China [5] - Mitigation initiatives include vendor collaboration, selective price adjustments, and diversification of sourcing [6]

Core Insights - Five Below exceeded analysts' expectations for both adjusted EPS and revenue in fiscal Q4 2024, reporting adjusted EPS of $3.48 against an estimate of $3.38 and revenue of $1.39 billion compared to an estimate of $1.38 billion [1] Financial Performance - Adjusted EPS for fiscal Q4 2024 was $3.48, down 4.7% from $3.65 in fiscal Q4 2023 [2] - Revenue reached $1.39 billion, a 4.0% increase from $1.34 billion in fiscal Q4 2023 [2] - Net income was $187.5 million, a decrease of 7.3% from $202.2 million in the previous year [2] - Operating income fell by 8.1% to $246.8 million compared to $268.4 million in fiscal Q4 2023 [2] Business Strategy - Five Below targets the tween and teen demographic, focusing on low-cost products and expanding its physical footprint [3] - The company opened 22 net new stores in fiscal Q4 2024, contributing to a total of 1,771 locations by the end of the fiscal year [4] - Management's strategic efforts include enhancing operational efficiency, inventory optimization, and reducing shrinkage to protect margins [6] Market Conditions - The fiscal Q4 2024 had 13 weeks compared to 14 weeks in fiscal Q4 2023, resulting in 7% fewer shopping days and contributing to declines in several metrics [5] - Comparable sales decreased by 3.0%, influenced by rising materials costs and SG&A expenses [5] Future Outlook - For fiscal 2025, Five Below projects net sales between $4.21 billion and $4.33 billion, with comparable sales expected to be flat to up 3% [7] - Diluted EPS is forecasted to be between $3.90 and $4.52, with adjusted EPS expected in the range of $4.10 to $4.72 [7] - The company plans to open approximately 150 new stores, indicating cautious optimism amid competitive pressures [7]

Five Below, Inc. (NASDAQ:FIVE) Q4 2024 Earnings Conference Call March 19, 2025 4:30 PM ET Company Participants Christiane Pelz - Vice President, Investor Relations & Treasury Winnie Park - Chief Executive Officer Ken Bull - Chief Operating Officer Kristy Chipman - Chief Financial Officer & Treasurer Conference Call Participants Kate McShane - Goldman Sachs Scot Ciccarelli - Truist Securities Michael Lasser - UBS John Heinbockel - Guggenheim Chuck Grom - Gordon Haskett Jeremy Hamblin - Craig-Hallum Capital G ...

Five Below (FIVE) came out with quarterly earnings of $3.48 per share, beating the Zacks Consensus Estimate of $3.38 per share. This compares to earnings of $3.65 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.96%. A quarter ago, it was expected that this discount retailer would post earnings of $0.16 per share when it actually produced earnings of $0.42, delivering a surprise of 162.50%.Over the last four quarters, the com ...

Financial Data and Key Metrics Changes - For the full year, sales reached nearly $3.9 billion, with a comparable sales decrease of 2.7% and adjusted EPS of $5.04 [10][28] - Total sales in Q4 increased 7.8% to $1.39 billion, while comparable sales decreased 3% due to five fewer holiday shopping days [25][27] - Adjusted net income for Q4 was $192.4 million, compared to $193.8 million last year, resulting in adjusted EPS of $3.48 [27][28] Business Line Data and Key Metrics Changes - The company opened a record 228 new stores in 2024, ending the year with 1,771 stores across the U.S. [10][11] - Adjusted gross profit for Q4 was $563.2 million, an increase of 6.2% year-over-year, while adjusted gross margin decreased by approximately 60 basis points to 40.5% [26][27] Market Data and Key Metrics Changes - The company experienced a decrease in comparable transactions of 1.9% and a 1% decrease in average ticket size [25] - Inventory at the end of the year was $659.5 million, compared to $584.6 million at the end of the previous fiscal year [29][30] Company Strategy and Development Direction - The company aims to sharpen its focus on the customer, particularly targeting kids and their parents, to build long-term relationships [14][22] - Plans include simplifying pricing, focusing on $1 to $5 price points, and enhancing the product assortment to drive customer visits [20][23] - The company is also looking to expand its footprint, with a target of 3,500 stores, and plans to densify existing markets while entering new ones like the Pacific Northwest [22][84] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer spending, noting no significant changes in customer behavior despite economic challenges [40] - The company is preparing for potential margin headwinds due to tariffs, estimating a 100 basis point impact for the full year [34][35] Other Important Information - The company is investing in marketing to enhance brand awareness and customer engagement, with a new Chief Marketing Officer appointed to lead these efforts [21][66] - Capital expenditures for fiscal 2025 are expected to be between $210 million and $230 million, reflecting new store openings and infrastructure investments [35] Q&A Session Summary Question: What is the overall health of the consumer? - Management is pleased with sales performance and sees no meaningful difference in customer spending habits compared to the past [40][41] Question: What is the expected impact of tariffs on margins? - The company anticipates about a 100 basis point impact from tariffs, with mitigation efforts including selective price adjustments and vendor negotiations [45][46] Question: How will the company regain lost margins? - Management indicated that improvements in shrink rates and operational efficiencies could help regain margins over time [57][58] Question: What is the status of new product development? - The company is excited about upcoming summer assortments, focusing on value and relevance for customers [62][63] Question: What is the plan for marketing spend? - The company aims to optimize marketing spend, focusing on efficient channels and enhancing customer engagement through social media [66]

Financial Data and Key Metrics Changes - For the full year, sales reached nearly $3.9 billion with a comparable sales decrease of 2.7% and adjusted EPS of $5.04 [10] - Total sales in Q4 increased 7.8% to $1.39 billion from $1.29 billion in the previous year, while comparable sales decreased 3% [25] - Adjusted net income for Q4 was $192.4 million compared to $193.8 million last year, resulting in adjusted EPS of $3.48 versus $3.50 last year [27][28] Business Line Data and Key Metrics Changes - The company opened a record 228 new stores across 39 states in 2024, ending the year with 1,771 stores [10][11] - Adjusted gross profit for Q4 was $563.2 million, an increase of 6.2% over the previous year, while adjusted gross margin decreased by approximately 60 basis points to 40.5% [26] - Adjusted SG&A for Q4 increased approximately 110 basis points to 22.3% due to fixed cost deleverage and higher store wages [27] Market Data and Key Metrics Changes - The company experienced a decrease in comparable transactions of 1.9% and a comp average ticket decrease of 1% [25] - The overall inventory position improved, with inventory at the end of the year at $659.5 million compared to $584.6 million at the end of the previous year [29][30] Company Strategy and Development Direction - The company aims to sharpen its focus on the customer, particularly targeting kids and their parents, to build long-term relationships [14][21] - Plans include simplifying pricing, focusing on $1 to $5 price points, and enhancing the product assortment to drive customer visits [19][22] - The company is also looking to expand its store footprint, with a target of 3,500 stores, and densifying existing markets [85] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer spending, noting no significant changes in buying habits [41] - The company is preparing for potential margin headwinds due to tariffs, estimating a 100 basis point impact for the full year [34][45] - Management is excited about the opportunities for growth and improving sales performance through operational excellence and financial discipline [7][21] Other Important Information - The company ended the year with approximately $529 million in cash and no debt, positioning itself strongly for future investments [29] - The company is actively addressing the impact of tariffs through vendor collaboration and selective price adjustments [33] Q&A Session Summary Question: Overall health of the consumer and buying habits - Management is pleased with sales performance and sees no meaningful difference in customer spending habits compared to the past [41][42] Question: Impact of tariffs on projections - The company assumes about a 100 basis point impact from tariffs for the full year, with mitigation efforts including selective price adjustments and vendor negotiations [45][46] Question: Margin recovery and pricing adjustments - Management is focused on ensuring value in products priced at $5 and below, with adjustments being made carefully [55][56] Question: New product development and marketing spend - The company is excited about new product assortments for summer and is optimizing marketing spend to ensure efficiency [63][66] Question: Evaluation of FiveBeyond and shrink rates - Management sees opportunities in the FiveBeyond section and is focused on reducing shrink rates, which have increased by about 100 basis points since 2019 [68][72]

Financial Performance - Net sales increased by 7.8% to $1.39 billion for Q4 and by 10.4% to $3.88 billion for fiscal 2024, excluding the impact of the 53rd week in fiscal 2023[4][10] - Comparable sales decreased by 3.0% for Q4 and by 2.7% for fiscal 2024[4][10] - Operating income for Q4 was $246.8 million, down from $268.4 million in Q4 fiscal 2023; adjusted operating income decreased by 1.5%[4] - Net income for Q4 was $187.5 million, compared to $202.2 million in Q4 fiscal 2023; adjusted net income decreased by 0.7%[4] - Diluted income per common share was $3.39 for Q4, down from $3.65 in Q4 fiscal 2023; adjusted diluted income per common share was $3.48, a decrease of 0.6%[4] - Net income for the fifty-two weeks ended February 1, 2025, was $253,611, a decrease of 15.7% from $301,106 for the fifty-three weeks ended February 3, 2024[20] - Operating income for the thirteen weeks ended February 1, 2025, was $246,764, down 8.1% from $268,442 for the same period in 2024[22] - Basic income per common share for the thirteen weeks ended February 1, 2025, was $3.41, compared to $3.66 for the same period in 2024, representing a decline of 6.8%[18] Future Projections - For fiscal 2025, net sales are expected to be in the range of $4.21 billion to $4.33 billion, with approximately 150 new stores planned[10] - The company anticipates net income for fiscal 2025 to be between $216 million and $250 million, with adjusted net income expected between $227 million and $261 million[10] - Gross capital expenditures for fiscal 2025 are projected to be approximately $210 million to $230 million[10] Store Operations - The company opened 22 net new stores in Q4, bringing the total to 1,771 stores, a 14.7% increase year-over-year[4] Cash and Assets - Cash and cash equivalents at the end of the year were $331,718, an increase from $179,749 at the beginning of the year[20] - Total current assets increased to $1,351,367 as of February 1, 2025, compared to $1,203,542 as of February 3, 2024, marking a growth of 12.3%[16] Liabilities - Total liabilities rose to $2,531,247 as of February 1, 2025, compared to $2,287,081 as of February 3, 2024, indicating an increase of 10.7%[16] Cash Flow - The company reported a net cash provided by operating activities of $430,648 for the fifty-two weeks ended February 1, 2025, down from $499,619 in the previous year[20] Tax Rate - The effective tax rate for Q4 was 25.2%, compared to 25.8% in Q4 fiscal 2023[4] Adjusted Metrics - Adjusted gross profit for the fifty-two weeks ended February 1, 2025, was $1,378,776, up from $1,273,825 for the previous year, reflecting an 8.2% increase[21] - Adjusted diluted income per common share for the thirteen weeks ended February 1, 2025, was $3.48, compared to $3.65 for the same period in 2024[24]

GAAP Diluted EPS of $3.39 for Q4 and $4.60 for Fiscal 2024 Adjusted Diluted EPS of $3.48 for Q4 and $5.04 for Fiscal 2024 Net Sales Increase of 7.8% for Q4 and 10.4% for Fiscal 2024 ex the 53rd week A reconciliation of adjusted gross profit, adjusted operating income, adjusted net income, and adjusted diluted income per common share to the most directly comparable financial measure presented in accordance with accounting principles generally accepted in the United States ("GAAP") is set forth in the schedul ...

Five Below, Inc. FIVE will release its fourth-quarter financial results after the closing bell on Wednesday, March 19.Analysts expect the Philadelphia, Pennsylvania-based company to report quarterly earnings at $3.37 per share, down from $3.65 per share in the year-ago period. Five Below projects quarterly revenue of $1.39 billion, compared to $1.34 billion a year earlier, according to data from Benzinga Pro.The company has beaten analyst estimates for revenue in two straight quarters and six of the last 10 ...

The upcoming report from Five Below (FIVE) is expected to reveal quarterly earnings of $3.38 per share, indicating a decline of 7.4% compared to the year-ago period. Analysts forecast revenues of $1.38 billion, representing an increase of 3.1% year over year.The current level reflects an upward revision of 1.3% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.Bef ...