Five Below still on top in Q3

Fast-growing teen retailer Five Below grew even faster in the third quarter, as the company reported an increase in same-store sales and raised its outlook.



For the period ended Oct. 31, same store sales increased 4.8%. Net sales increased by 23% to $169.7 million from $138 million in the third quarter of fiscal 2014. Net income was $4.3 million, compared to $3.3 million. Diluted income per common share was 8 cents, compared to 6 cents per share in the third quarter of fiscal 2014.



"We are very pleased to report third quarter financial results that came in ahead of our expectations," said Joel Anderson, CEO. "Continued strength in the performance of our new stores and above-plan comp results were driven by our compelling assortment of trend-right products at a great value that resonated with customers."



The company opened 17 new stores and ended the quarter with 434 stores in 27 states. This represents an increase in stores of 18.9% from the end of the third quarter of fiscal 2014.



According to Bloomberg, Five Below's current growth trajectory puts it on the same path of Dollar Tree, growing at the same pace as Dollar Tree did back in the mid-1990s, back when Dollar Tree produced near equal revenue to Five Below right now.



"We have been in preparation mode for the fourth quarter all year and believe we are well-positioned for the peak holiday weeks that lie ahead. Our teams have planned exciting marketing campaigns to highlight a great holiday product assortment, which we believe will deliver ample newness and 'wow' for our customers and reinforce our position as a destination for holiday shopping," Anderson said.



Five Below also announced that it has appointed Daniel Kaufman to its board of directors. Kaufman serves as SVP, general counsel and corporate secretary of GameStop.