Five Below in strong Q3; holiday off to ‘strong start’
Five Below reported third-quarter results that beat Wall Street expectations despite a “challenging” supply chain environment.
The teen and tween value retailer reported that its earnings totaled $24.2 million, or $0.43 a share, in the quarter ended Oct. 30, compared with $20.4 million, or $0.36 a share, in the year-ago period. Analysts had expected earnings per share of $0.29.
Sales rose 27.5% to $608 million, topping estimates of $564 million. Same-store sales increased 14.8%.
"We delivered record-setting third quarter performance on top of a record third quarter last year," said CEO Joel Anderson. "These results reflect the phenomenal execution by our teams in a challenging supply-chain environment."
During the quarter, Five Below opened 52 stores across 24 states, including entering its 40th state, New Mexico. In total, it opened 171 stores in 2021, giving it a footprint of 1,173 stores.
“As we look ahead, we are confident that we will continue to drive sustainable long-term growth while realizing our 2,500-plus store potential in the U.S.,” Anderson said.
[Read More: Five Below opening 170 to 180 stores; expanding new, higher-priced in-store concept]
Anderson noted that the holiday season was off to a “strong start” at Five Below.
“The teams are working diligently across our key strategic priorities of product, experience and supply chain to give our customers an amazing Five Below shopping experience for the holidays,” he said. “We believe we are well positioned to continue to delight customers with our extreme value Wow assortment, including the Five Beyond offering.”