Five Below goes above expectations in Q1; plans 85 new stores

Specialty retailer Five Below Inc. beat Wall Street projections for earnings and same-store sales in a hot first quarter of fiscal 2016.



Net income was $6.8 million, up 58% from $4.3 million the same quarter a year earlier. Higher gross profit and lower expenses boosted profit. Net sales rose 25% to $192.7 million, from $153.7 million. And the company reported same-store sales growth of 4.9%.



Five Below opened 21 new stores and ended the quarter with 458 stores in 28 states. This represents an increase in stores of 19% from the end of the first quarter of fiscal 2015. During fiscal 2016, the company expects to open 85 new stores, including 28 in the second quarter.



“We are very pleased with our first quarter results that once again demonstrate the universal appeal of Five Below and the disciplined execution of our key initiatives,” said Joel Anderson, CEO. “Our top-line outperformance was driven by continued strength at both our new and existing stores.”



For the second quarter of fiscal 2016, net sales are expected to be in the range of $216 million to $219 million, assuming an approximate 3% increase in same-store sales. Net income is expected to be in the range of $8.5 million to $9.2 million.



For fiscal 2016, the company continues to expect net sales to be in the range of $995 million to $1,005 million, assuming an approximate 3% increase in same-store sales. Net income is expected to be in the range of $69.9 million to $72.2 million.