Five Below(FIVE)2025-06-05 21:31Store Operations - As of May 3, 2025, the company operated 1,826 stores across 44 states[81]. - The company emphasizes the importance of opening new stores as a significant part of its growth strategy[92]. - The company plans to make cash capital expenditures of approximately 230 million in fiscal 2025, primarily for new store openings[114]. Sales Performance - The company reported that net sales are typically highest in the fourth fiscal quarter due to the year-end holiday season[86]. - Net sales increased to 811.9 million in the prior year[105]. - Comparable sales rose by 7.1%, driven by a 6.2% increase in the number of transactions and a 0.9% increase in the average dollar value of transactions[106]. - E-commerce sales are included in net sales and comparable sales, reflecting the company's strategy to enhance online presence[82]. - The company acknowledges that its business is seasonal, impacting net sales fluctuations throughout the fiscal year[86]. Cost and Profitability - Gross profit is calculated as net sales minus cost of goods sold, with gross margin being gross profit as a percentage of net sales[95]. - Cost of goods sold increased to 548.3 million, primarily due to higher merchandise costs associated with increased net sales[107]. - Gross profit increased to 263.5 million, with gross margin improving to 33.4% from 32.5%[108]. - Selling, general and administrative expenses rose to 227.4 million, representing 28.1% of net sales[109]. - Operating income is defined as gross profit minus SG&A expenses, serving as an indicator of business productivity[100]. Financial Health - Net income increased to 31.5 million in the prior year[112]. - Cash provided by operating activities was 106.3 million compared to the previous year[121]. - As of May 3, 2025, the company had approximately 100 million of common stock through November 27, 2026[117]. Risks and Challenges - The company faces risks including inflation, supply chain disruptions, and increased competition from other retailers[78]. - SG&A expenses are expected to increase in future periods due to ongoing store growth and variability in performance-based compensation[99].