Five Below Announces First Quarter Fiscal 2021 Financial Results

Five Below
Operating Profit grew over 2.5 times versus Q1 2019

PHILADELPHIA, PA — Five Below, Inc. (NASDAQ: FIVE) recently announced financial results for the first quarter ended May 1, 2021. Given the lack of comparability to the first quarter of 2020, when the Company temporarily closed all of its stores due to COVID-19, results are also compared to the first quarter of 2019.

For the first quarter ended May 1, 2021:

  • Net sales increased by 197.6% to $597.8 million from $200.9 million in the first quarter of fiscal 2020 and by 63.9% from $364.8 million in the first quarter of fiscal 2019; comparable sales increased by 162.0% versus the first quarter of fiscal 2020. For the comparable subset of stores that were open in both the first quarter of fiscal 2019 and the first quarter of fiscal 2021, sales increased 23%.
  • The Company opened 67 net new stores and ended the quarter with 1,087 stores in 39 states. This represents an increase in stores of 18.2% from the end of the first quarter of fiscal 2020.
  • Operating income was $63.7 million compared to an operating loss of $72.2 million in the first quarter of fiscal 2020. Operating income increased over 2.5 times from $24.5 million in the first quarter of fiscal 2019.
  • The effective tax rate was 20.9% compared to 29.8% in the first quarter of fiscal 2020 and 1.9% in the first quarter of fiscal 2019.
  • Net income was $49.6 million compared to a net loss of $50.6 million in the first quarter of fiscal 2020. Net income increased by 93.3% from $25.7 million in the first quarter of fiscal 2019.
  • Diluted income per common share was $0.88 compared to a diluted loss per common share of $0.91 in the first quarter of fiscal 2020 and a diluted income per common share of $0.46 in the first quarter of fiscal 2019. The benefit from share-based accounting was approximately $0.04 in the first quarter of fiscal 2021, approximately $0.02 in the first quarter of fiscal 2020, and approximately $0.11 in the first quarter of fiscal 2019.
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Joel Anderson, President and CEO of Five Below, stated, “Our first quarter results kicked off a great start to fiscal 2021, surpassing our expectations. Our teams did an outstanding job executing in an environment of elevated consumer demand. We saw broad-based strength across our worlds, as we offered customers the extreme value, trend-right products in an amazing shopping experience they expect from Five Below. We continued to invest in our growth, opening a record 68 new stores across various states, including Utah, our 39th state. Six of these new stores finished in the top 25 of all Spring grand openings.”

Mr. Anderson continued, “We are excited to continue growing and innovating across our key strategic initiatives of product, experience and supply chain. We are on track to open 170 to 180 new stores this year and offer our unique Five Below experience to more new customers. With the inherent flexibility of our eight worlds, unique merchandising approach and focus on innovation, we believe we remain in a position of strength to continue growing Five Below and driving sustainable, long-term value for all stakeholders.”

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Second Quarter and Fiscal 2021 Outlook:
The Company expects the following results for the second quarter of fiscal 2021. Given the uncertainty related to COVID-19 and potential future shifts in consumer spending, the Company will not be providing sales or earnings guidance for the full year of fiscal 2021.

For the second quarter of fiscal 2021:

  • Net sales are expected to be in the range of $640 million to $660 million based on opening approximately 30 new stores.
  • Net income is expected to be in the range of $56.9 million to $63.7 million.
  • Diluted income per common share is expected to be in the range of $1.01 to $1.13 on approximately 56.4 million diluted weighted average shares outstanding.

Five Below is a leading high-growth value retailer offering trend-right, high-quality products loved by tweens, teens and beyond

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