Five Below(FIVE) - 2025 Q1 - Quarterly Results

Financial Performance - Q1 net sales increased by 11.8% to $811.9 million compared to $726.2 million in Q1 fiscal 2023; comparable sales decreased by 2.3%[5] - Operating income was $36.2 million, down from $42.4 million in Q1 fiscal 2023; adjusted operating income would have been $38.2 million excluding a $2.0 million non-recurring expense[5] - Net income for Q1 was $31.5 million, compared to $37.5 million in Q1 fiscal 2023; adjusted net income would have been $33.0 million excluding the non-recurring expense[5] - Diluted EPS was $0.57, down from $0.67 in Q1 fiscal 2023; adjusted diluted EPS would have been $0.60 excluding the non-recurring expense[5] - Operating income decreased to $36,150,000, down 14.5% from $42,412,000 in the prior year[19] - Net income for the period was $31,467,000, a decline of 16.0% from $37,478,000 year-over-year[19] - Basic and diluted income per common share both decreased to $0.57, down from $0.67 in the same quarter last year[19] Future Projections - For Q2 fiscal 2024, net sales are expected to be in the range of $830 million to $850 million, with a mid-single digit decrease in comparable sales anticipated[6] - Full year fiscal 2024 net sales are projected to be between $3.79 billion and $3.87 billion, assuming a 3% to 5% decrease in comparable sales[12] - Full year fiscal 2024 net income is expected to range from $275 million to $297 million; adjusted net income is projected to be between $277 million and $299 million[12] Capital Expenditures and Investments - Gross capital expenditures for fiscal 2024 are expected to be approximately $345 million to $355 million[12] - Net cash used in investing activities totaled $73,078,000, compared to $66,487,000 in the same period last year[21] - The company repurchased and retired common stock amounting to $30,151,000 during the quarter[21] Cash Flow and Liquidity - Net cash provided by operating activities was $26,439,000, significantly lower than $85,291,000 in the prior year[21] - Cash and cash equivalents at the end of the period were $96,308,000, down from $335,286,000 at the end of the same quarter in 2023[21] - The company experienced a net decrease in cash and cash equivalents of $83,441,000 during the quarter[21] Inventory Management - Inventories increased by $45,354,000, compared to a decrease of $6,669,000 in the prior year[21] Taxation - The effective tax rate for Q1 was 23.5%, compared to 18.6% in Q1 fiscal 2023[5]