Five Below to open 200-plus stores, convert 400 locations to higher-price format
Five Below has laid out ambitious store plans for 2023.
The tween and teen discounter said it plans to open the most stores in its history — more than 200 locations — in fiscal 2023. It also plans to convert more than 400 stores to its new “Five Beyond” format, which contains an in-store shop featuring higher-priced items. The concept, now in place in some 250 locations, evolved from the chain's "Ten Below" pilot, which featured a section of merchandise priced above the retailer's signature $5 price threshold.
Five Below continues to have one of the most aggressive expansion programs in specialty retail. In March, the company said it was increasing its store potential in the U.S. from 2,500-plus to 3,500-plus locations,
Citing “momentum” as it enters fiscal 2023, Five Below revealed its expansion plans in a release on its sales for the holiday period (October 30, 2022 through January 7, 2023). The company said its holiday sales rose 11.2% to $1.003.7 billion from $902.3 million in the comparable year-ago period. Comparable sales increased by 0.9%.
“We are pleased with our holiday performance, with results in the upper end of our fourth quarter sales guidance range,” stated president and CEO Joel Anderson. “We believe our diverse eight worlds and WOW merchandise offering along with increased and more targeted marketing effectively highlighted the tremendous value for our customers."
Given its holiday performance, Five Below said it now expects to finish the fourth quarter and full-year fiscal 2022 (ends January 28) near the high end of our previously provided guidance ranges. For the fourth quarter, the company expects net sales of $1.085 billion to $1.110 billion, with a 1% decrease to 1% increase in comparable sales.
For the full year, Five Below expects net sales of $3.038 billion to $3.063 billion, with an approximate 2% to 3% decrease in comparable sales.
Five Below will report its full-year results and outlook for fiscal 2023 on its fourth quarter earnings call in March.
Headquartered in Philadelphia, Five Below has over 1,300 stores in 42 states.