PHILADELPHIA, PA — Five Below, Inc. (NASDAQ: FIVE) this week announced financial results for the fourth quarter and full year of fiscal 2022 ended January 28, 2023 and outlook for fiscal 2023.
For the fourth quarter ended January 28, 2023:
- Net sales increased by 12.7% to $1,122.8 million from $996.3 million in the fourth quarter of fiscal 2021; comparable sales increased by 1.9% versus the fourth quarter of fiscal 2021.
- The Company opened 48 new stores and ended the quarter with 1,340 stores in 42 states. This represents an increase in stores of 12.6% from the end of the fourth quarter of fiscal 2021.
- Operating income was $225.8 million compared to $187.6 million in the fourth quarter of fiscal 2021.
- The effective tax rate was 24.8% compared to 25.1% in the fourth quarter of fiscal 2021.
- Net income was $171.3 million compared to $140.2 million in the fourth quarter of fiscal 2021.
- Diluted income per common share was $3.07 compared to $2.49 in the fourth quarter of fiscal 2021. The fourth quarter of fiscal 2022 included a $0.01 benefit from shared-based accounting.
Joel Anderson, President and CEO of Five Below, stated, “We are pleased to close out fiscal 2022 with fourth quarter results that demonstrate the relevancy, resiliency and flexibility of our model. Our Wow offering and Save the Holidays marketing campaign were particularly effective as customers contended with inflation and sought value. We are very proud of how our organization navigated the challenges of 2022 while simultaneously making progress on key initiatives that underpin our Triple-Double goals.”
Mr. Anderson continued, “In 2023, we will build on this progress. We begin the year with a healthy inventory position and a strong, debt-free balance sheet that enable us to continue to play offense, further elevate the customer experience and execute on our multi-year growth opportunity. We plan to open a record 200 new stores, convert 400 stores to the new Five Beyond format, roll out new categories and services and enhance marketing, all while leveraging data analytics and our five-node DC network to continue to deliver the Wow that is our customer promise.”
For the fiscal year ended January 28, 2023:
- Net sales increased by 8.0% to $3,076.3 million from $2,848.4 million in fiscal 2021; comparable sales decreased by 2.0% versus fiscal 2021.
- The Company opened 150 new stores compared to 170 net new stores in fiscal 2021.
- Operating income was $345.0 million compared to $379.9 million in fiscal 2021.
- The effective tax rate was 24.7% compared to 24.0% in fiscal 2021.
- Net income was $261.5 million compared to $278.8 million in fiscal 2021.
- Diluted income per common share was $4.69 compared to $4.95 in fiscal 2021. The benefit from share-based accounting was approximately $0.04 in fiscal 2022 and approximately $0.06 in fiscal 2021.
- The Company repurchased 247,132 shares in fiscal 2022 at a cost of approximately $40.0 million.
First Quarter and Fiscal 2023 Outlook:
- The Company expects the following results for the first quarter and full year of fiscal 2023, which contains an additional, non-comparable week, or the “53rd week” in the fourth quarter. This guidance does not include the impact of share repurchases, if any.
For the first quarter of fiscal 2023:
- Net sales are expected to be in the range of $723 million to $735 million based on opening approximately 25 new stores and assuming an approximate 2.5% to 4% increase in comparable sales.
- Net income is expected to be in the range of $33 million to $37 million.
- Diluted income per common share is expected to be in the range of $0.59 to $0.65 on approximately 56.1 million diluted weighted average shares outstanding.
For the full year of fiscal 2023:
- Net sales are expected to be in the range of $3.49 billion to $3.59 billion based on opening 200 new stores and assuming an approximate 1% to 4% increase in comparable sales.
- Net income is expected to be in the range of $295 million to $323 million.
- Diluted income per common share is expected to be in the range of $5.25 to $5.76 on approximately 56.1 million diluted weighted average shares outstanding.
- The 53rd week is expected to contribute approximately $40 million in sales and approximately $0.08 in diluted income per common share.
- Gross capital expenditures are expected to be approximately $325 million in fiscal 2023.
For more information, visit www.fivebelow.com.
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