PHILADELPHIA, PA — Five Below, Inc. (NASDAQ: FIVE) recently announced financial results for the second quarter and year to date period ended July 29, 2023.
For the second quarter ended July 29, 2023:
- Net sales increased by 13.5% to $759.0 million from $668.9 million in the second quarter of fiscal 2022; comparable sales increased by 2.7% versus the second quarter of fiscal 2022.
- The Company opened 40 new stores and ended the quarter with 1,407 stores in 43 states. This represents an increase in stores of 12.4% from the end of the second quarter of fiscal 2022.
- Operating income was $58.6 million compared to $56.0 million in the second quarter of fiscal 2022.
- The effective tax rate was 25.6% compared to 26.3% in the second quarter of fiscal 2022.
- Net income was $46.8 million compared to $41.3 million in the second quarter of fiscal 2022.
- Diluted income per common share was $0.84 compared to $0.74 in the second quarter of fiscal 2022.
Joel Anderson, President and CEO of Five Below, said, “We are pleased to deliver second quarter results in line with our guidance on the top and bottom line. Notably, the 2.7% comparable sales increase was driven by a 4.5% increase in comp transactions, illustrating the success of our Five Beyond conversion strategy and the appeal of our extreme value, WOW offering.”
Mr. Anderson continued, “As we look to the second half of the year, our merchants have sourced a terrific line-up of fresh, trend-right product at outstanding value for the holiday season. While we are adjusting our earnings guidance to reflect an anticipated increase in shrink reserves, our sales outlook remains unchanged. We will continue to play offense on sourcing amazing product, capitalizing on an improved supply chain, opening a record number of new stores, and executing on the continued success of our Five Beyond store format.”
For the year to date period ended July 29, 2023:
- Net sales increased by 13.5% to $1,485.2 million from $1,308.5 million in the year to date period of fiscal 2022; comparable sales increased by 2.7% versus the year to date period of fiscal 2022.
- The Company opened 67 new stores compared to 62 new stores in the year to date period of fiscal 2022.
- Operating income was $101.0 million compared to $98.3 million in the year to date period of fiscal 2022.
- The effective tax rate was 22.6% compared to 24.6% in the year to date period of fiscal 2022.
- Net income was $84.3 million compared to $74.1 million in the year to date period of fiscal 2022.
- Diluted income per common share was $1.51 compared to $1.33 in the year to date period of fiscal 2022. The benefit from share-based accounting was approximately $0.06 in the year to date period of fiscal 2023 compared to $0.02 in the year to date period of fiscal 2022.
Third Quarter and Fiscal 2023 Outlook:
The Company expects the following results for the third quarter and full year fiscal 2023:
For the third quarter of Fiscal 2023:
- Net sales are expected to be in the range of $715 million to $730 million based on opening approximately 70 new stores and assuming an approximate flat to 2% increase in comparable sales.
- Net income is expected to be in the range of $10 million to $14 million.
- Diluted income per common share is expected to be in the range of $0.17 to $0.25 on approximately 55.9 million diluted weighted average shares outstanding.
For the full year of Fiscal 2023:
- Net sales are expected to be in the range of $3.50 billion to $3.57 billion based on opening over 200 new stores and assuming an approximate 1% to 3% increase in comparable sales.
- Net income is expected to be in the range of $295 million to $311 million.
- Diluted income per common share is expected to be in the range of $5.27 to $5.55 on approximately 55.9 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 $335 million in fiscal 2023.
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