Five Below ramps up store growth in 2020, revises Q4 outlook

Press enter to search
Close search
Open Menu

Five Below ramps up store growth in 2020, revises Q4 outlook

By Deena Amato-McCoy - 01/13/2020
Five Below

New store openings will remain a priority for Five Below this year. 

The tween and teen value-oriented retailer reported Monday that it will open 180 new stores in 2020, up from roughly 150 locations in fiscal 2019.  The expansion for 2020 translates to 20% unit growth, according to Five Below, which currently has 900 stores in 36 states.

Five Below plans to add a Ten Below zone in the majority of its new stores as well as its remodels. The department, as previously reported, marks a break from the retailer's designed price strategy (everything priced at $5 and under) by featuring goods priced from $6 to $10.

The company also announced that it has acquired the e-commerce platform, fulfillment operation and certain other assets of in a move to expand its digital capabilities. 

Five Below reported that its sales for the holiday period (November 3, 2019 through January 4, 2020) rose 13.4% to $596.6 million from $526.1 million. Same-store    sales decreased by 2.6%. The company cited the "headwind" of six fewer shopping days between Thanksgiving and Christmas.

Based on this decline, Five Below revised its fourth-quarter sales outlook to range from $685 million to $688 million, and expects same-store sales to decrease 2.0% to 2.5%. Earnings per share will range from $1.93 to $1.96.

The company also updated its full-year guidance with net sales of $1.845 billion to $1.848 billion, or growth of 18.3% to 18.5%. It expects a same-store sales increase of 0.5% to 0.7%, and earnings will be $3.07 to $3.10, or growth of 15.4% to 16.5%.

Related Topics