Five Below to open 70 stores in 2015

Teen and tween specialty retailer Five Below is accelerating store growth this year even though its relatively young store base mustered a modest 3.2% fourth quarter same store sales increase.

Five Below opened 62 new stores last year compared to 60 units the prior year to end the year with 366 locations in 21 states. The additional selling space and a 3.2% comp increase caused sales to increase 24.4% to $264 million from $212 million. Profits increased to $33.3 million compared to $24.8 million.

A 3.2% comp isn’t bad, but often times, retailers who open stores at a rapid pace enjoy strong same store sales growth as their immature locations benefit from repeat shopping behavior and attract new customers.

"We are pleased to have delivered a 24% increase in sales and a 30% increase in adjusted EPS for the fourth quarter,” said Five Below CEO Joel Anderson. “For the full year, we grew our store base by 20% and delivered a same store sales increase of 3.4%, resulting in a full year sales increase of 27% and an adjusted EPS increase of 31%. We continue to see strong productivity out of our new stores as our brand, our merchandise offering and our price points continue to resonate with customers in both new and existing markets alike."

In the coming year, Five Below said it expects same store sales to increase 3% and net income to increase by more than 25%.