Five Below reports strong Q1 growth as sales rise 19.5%; CFO to leave
Five Below posted strong sales growth in its first-quarter and also announced it is searching for a new CFO.
The tween and teen value retailer said that chief financial officer and treasurer Kristy Chipman has told the company she intends to step down for "personal reasons." Five Below COO Ken Bull will also take on the role of interim CFO while the company searches for a permanent replacement. (Bull was previously CFO of Five Below for 10 years.)
Five Below reported net income of $41.1 million, or earnings per share of $0.75, for the quarter ended May 3, compared to $31.5 million, or earnings per share of $57. in the year-ago quarter. Adjusted net earnings were $0.86, way in front of analysts' expectations of $0.66 per share.
Net sales increased by 19.5% to $970.5 million, beating expectations of $932.86 million. Comparable sales increased by 7.1%.
Operating income was $50.8 million compared to $36.2 million in the year-ago period. Adjusted operating income was $59.6 million compared to $38.1 million last year.
"Our first quarter results demonstrate the effectiveness of our strategy, grounded in trend-right product, extreme value and a fun store experience," said Winnie Park, who took the reins as CEO In December 2024. "We were pleased to see broad-based strength across the majority of our merchandising worlds, resulting in a transaction-driven 7.1% increase in comparable sales, as well as strong performance from our new stores. Our teams executed our customer-centric strategy at a very high level, and these results reflect the progress we are making across merchandising, marketing and end-to-end operations."
Five Below raised its full-year guidance. It forecasts adjusted earnings per share of $4.25-$4.72, up from its prior guidance of $4.10 to $4.72 per share. It expects revenue to fall between $4.33 and $4.42 billion, up from prior guidance of $4.21 billion to $4.33 billion.
“Looking ahead, this unwavering focus on the core customer combined with disciplined execution of our strategy and the agility of our teams position us to deliver our financial and operational objectives as we navigate the impact of tariffs and the associated uncertainty in the current global trade environment,” Park said.
The opened 55 new stores and ended the quarter with 1,826 stores in 44 states.
