Five Below still poised for expansion

Five Below reported an increase in same store sales and profit for the first quarter in the same week the company opened a new distribution center to support its expansion plans.

The retailer said that net sales increased in the first quarter ended May 2 by 22% to $153.7 million from $126.0 million in the first quarter of fiscal 2014; same store sales increased by 1.7%. Operating income increased to $7 million from $5.3 million in the first quarter of fiscal 2014. Adjusted operating income, which excludes the impact of the founders' transaction in the first quarter of fiscal 2014, increased to $7 million from $6.1 million in the first quarter of fiscal 2014.

Joel Anderson, CEO, said: "We are pleased with our first quarter results. Continued strength in new store performance drove the sales and earnings upside versus 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, including our new TV commercial that we are testing and that can be viewed on www.fivebelow.com/summerTV."

Anderson added: "As we look ahead, our number one priority remains store growth. We are on track to open 70 stores and enter six new states in 2015, and we are also making good progress on our planned 85 openings for 2016. Our entire team is intently focused on driving brand awareness and engagement through marketing enhancements, continually updating our merchandise mix to keep the stores looking fresh and the product presentation compelling, and ensuring that we have the proper systems and infrastructure in place as we continue to grow and scale Five Below."

The company opened 19 new stores and ended the quarter with 385 stores in 23 states.