Five Below profit rises in Q1; plans 155 new stores

Philadelphia – Five Below Inc. reported healthy profit and sales gains in the first quarter of fiscal 2015 and is planning to open 155 stores in the next two fiscal years. The retailer’s net income totaled $4.28 million, up 39% from $3.08 million a year earlier.



Higher gross profit and the elimination of debt extinguishment loss helped Five Below reach above in net income. Five Below plans to open 70 stores and enter six new states in 2015, and plans 85 openings for 2016.



Net sales increased by 22% to $153.7 million from $126. Million, while same-store sales increased by 1.7%. To support expansion in the Eastern U.S., in July 2015 Five Below will start shipping from a 1,045,000-sq.-ft. distribution facility located in Pedricktown, New Jersey. This will replace the company's existing 421,000-sq.-ft. facility located in New Castle, Delaware.



“We are pleased with our first quarter results,” said Joel Anderson, CEO. “Continued strength in new store performance drove the sales and earnings upside compared to our guidance, reinforcing our excitement and confidence in the store growth potential for this brand. During the quarter we opened 19 new locations, including our entry into the new states of Kentucky and Alabama. In addition, we continued to invigorate our assortments with even more newness and are optimizing our marketing to better reach and engage our customers.”



For fiscal 2015, net income is expected to be in the range of $56.4 million to $58.2 million. Net sales are expected to be in the range of $820 million to $828 million, based on opening 70 new stores for the full year and assuming an approximate 3% increase in same-store sales.



For the second quarter, net income is expected to be in the range of $6.4 million to $7 million. Net sales are expected to be in the range of $182 million to $185 million, based on opening 25 new stores and assuming a 4% to 5% increase in same-store sales.