Five Below, Inc. Announces First Quarter Fiscal 2022 Financial Results
Philadelpha, PA — Five Below, Inc. announced financial results for the first quarter ended April 30, 2022.
For the first quarter ended April 30, 2022:
- Net sales increased by 7.0% to $639.6 million from $597.8 million in the first quarter of fiscal 2021; comparable sales decreased by 3.6% versus the first quarter of fiscal 2021.
- The Company opened 35 new stores and ended the quarter with 1,225 stores in 40 states. This represents an increase in stores of 12.7% from the end of the first quarter of fiscal 2021.
- Operating income was $42.3 million compared to $63.7 million in the first quarter of fiscal 2021.
- The effective tax rate was 22.3% compared to 20.9% in the first quarter of fiscal 2021.
- Net income was $32.7 million compared to $49.6 million in the first quarter of fiscal 2021.
- Diluted income per common share was $0.59 compared to $0.88 in the first quarter of fiscal 2021. The benefit from share-based accounting was approximately $0.03 in the first quarter of fiscal 2022 compared to $0.04 in the first quarter of fiscal 2021.
- The Company repurchased 247,132 shares in the first quarter of fiscal 2022 at a cost of approximately $40.0 million.
Joel Anderson, President and CEO of Five Below, stated, “While first quarter sales were softer than expected, disciplined cost management enabled us to deliver against our earnings outlook. We are well positioned from an inventory standpoint with improved in-stocks and accelerated receipts for Summer and Back to School. We are pleased with the progress our teams are making across our strategic priorities, which are key to delivering on our vision for future growth, the Triple-Double. With the planned openings and conversions in fiscal 2022, we are on track to end the year with nearly half of our stores in the new Five Beyond format.”
Mr. Anderson continued, “In addition, we are capitalizing on real-time opportunities in the marketplace, including merchandise and real estate, while piloting new products and services that embody the rituals of life and milestones of growing up. With that said, as we look to the balance of the year, we expect the macro environment to remain challenging. We know that during these times, our customer seeks out value even more. We are well positioned to deliver on our commitment to bring fresh, new WOW products that our customers want, at extreme value, and with an amazing shopping experience.”
Second Quarter and Fiscal 2022 Outlook:
The Company expects the following results for the second quarter and full year fiscal 2022:
For the second quarter of Fiscal 2022:
- Net sales are expected to be in the range of $675 million to $695 million based on opening approximately 30 new stores and assuming an approximate 2% to 5% decrease in comparable sales.
- Net income is expected to be in the range of $41 million to $48 million.
- Diluted income per common share is expected to be in the range of $0.74 to $0.86 on approximately 55.8 million diluted weighted average shares outstanding.
For the full year of Fiscal 2022:
- Net sales are expected to be in the range of $3.04 billion to $3.12 billion based on opening approximately 160 new stores and assuming an approximate flat to 2% decrease in comparable sales.
- Net income is expected to be in the range of $271 million to $293 million.
- Diluted income per common share is expected to be in the range of $4.85 to $5.24 on approximately 55.8 million diluted weighted average shares outstanding.
- Gross capital expenditures are expected to be approximately $225 million in fiscal 2022.
C
Five Below, Inc.
Christiane Pelz
Vice President, Investor Relations & Treasury
215-207-2658
Christiane.Pelz@fivebelow.com
FIVE BELOW, INC.
Consolidated Balance Sheets
(Unaudited)
(in thousands)
| April 30, 2022 | January 29, 2022 | May 1, 2021 | |||||||
| Assets | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 120,501 | $ | 64,973 | $ | 84,170 | |||
| Short-term investment securities | 189,140 | 277,141 | 299,289 | ||||||
| Inventories | 504,182 | 455,104 | 326,710 | ||||||
| Prepaid income taxes and tax receivable | 4,511 | 11,325 | 2,248 | ||||||
| Prepaid expenses and other current assets | 87,280 | 96,196 | 55,175 | ||||||
| Total current assets | 905,614 | 904,739 | 767,592 | ||||||
| Property and equipment, net | 799,765 | 777,497 | 624,775 | ||||||
| Operating lease assets | 1,232,246 | 1,151,395 | 1,023,883 | ||||||
| Long-term investment securities | 10,182 | 37,717 | 8,684 | ||||||
| Other assets | 12,973 | 9,112 | 18,794 | ||||||
| $ | 2,960,780 | $ | 2,880,460 | $ | 2,443,728 | ||||
| Liabilities and Shareholders’ Equity | |||||||||
| Current liabilities: | |||||||||
| Line of credit | $ | — | $ | — | $ | — | |||
| Accounts payable | 230,282 | 196,461 | 169,392 | ||||||
| Income taxes payable | 35,767 | 28,096 | 7,831 | ||||||
| Accrued salaries and wages | 13,089 | 53,539 | 26,942 | ||||||
| Other accrued expenses | 140,849 | 145,268 | 114,252 | ||||||
| Operating lease liabilities | 174,400 | 163,537 | 147,176 | ||||||
| Total current liabilities | 594,387 | 586,901 | 465,593 | ||||||
| Other long-term liabilities | 3,807 | 1,663 | 1,048 | ||||||
| Long-term operating lease liabilities | 1,209,785 | 1,135,456 | 1,014,768 | ||||||
| Deferred income taxes | 37,859 | 36,156 | 31,677 | ||||||
| Total liabilities | 1,845,838 | 1,760,176 | 1,513,086 | ||||||
| Shareholders’ equity: | |||||||||
| Common stock | 555 | 556 | 560 | ||||||
| Additional paid-in capital | 242,607 | 280,666 | 320,234 | ||||||
| Retained earnings | 871,780 | 839,062 | 609,848 | ||||||
| Total shareholders’ equity | 1,114,942 | 1,120,284 | 930,642 | ||||||
| $ | 2,960,780 | $ | 2,880,460 | $ | 2,443,728 | ||||
FIVE BELOW, INC.
Consolidated Statements of Operations
(Unaudited)
(in thousands, except share and per share data)
| Thirteen Weeks Ended | |||||||
| April 30, 2022 | May 1, 2021 | ||||||
| Net sales | $ | 639,596 | $ | 597,823 | |||
| Cost of goods sold | 432,819 | 396,954 | |||||
| Gross profit | 206,777 | 200,869 | |||||
| Selling, general and administrative expenses | 164,448 | 137,182 | |||||
| Operating income | 42,329 | 63,687 | |||||
| Interest (expense) income and other (expense) income, net | (237 | ) | (977 | ) | |||
| Income before income taxes | 42,092 | 62,710 | |||||
| Income tax expense | 9,374 | 13,114 | |||||
| Net income | $ | 32,718 | $ | 49,596 | |||
| Basic income per common share | $ | 0.59 | $ | 0.89 | |||
| Diluted income per common share | $ | 0.59 | $ | 0.88 | |||
| Weighted average shares outstanding: | |||||||
| Basic shares | 55,647,200 | 55,970,620 | |||||
| Diluted shares | 55,834,287 | 56,274,491 | |||||
FIVE BELOW, INC.
Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
| Thirteen Weeks Ended | ||||||||
| April 30, 2022 | May 1, 2021 | |||||||
| Operating activities: | ||||||||
| Net income | $ | 32,718 | $ | 49,596 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 23,977 | 19,237 | ||||||
| Share-based compensation expense | 5,998 | 5,797 | ||||||
| Deferred income tax expense | 1,703 | 2,766 | ||||||
| Other non-cash (income) expenses | (455 | ) | 176 | |||||
| Changes in operating assets and liabilities: | ||||||||
| Inventories | (49,078 | ) | (45,443 | ) | ||||
| Prepaid income taxes and tax receivable | 6,814 | 4,102 | ||||||
| Prepaid expenses and other assets | 4,878 | 3,333 | ||||||
| Accounts payable | 33,883 | 30,863 | ||||||
| Income taxes payable | 7,671 | 5,806 | ||||||
| Accrued salaries and wages | (40,450 | ) | (16,503 | ) | ||||
| Operating leases | 4,341 | 3,594 | ||||||
| Other accrued expenses | 10,117 | 3,418 | ||||||
| Net cash provided by operating activities | 42,117 | 66,742 | ||||||
| Investing activities: | ||||||||
| Purchases of investment securities and other investments | (5,005 | ) | (232,437 | ) | ||||
| Sales, maturities, and redemptions of investment securities | 120,541 | 64,142 | ||||||
| Capital expenditures | (58,091 | ) | (76,444 | ) | ||||
| Net cash provided by (used in) investing activities | 57,445 | (244,739 | ) | |||||
| Financing activities: | ||||||||
| Repurchase and retirement of common stock | (40,007 | ) | — | |||||
| Proceeds from exercise of options to purchase common stock and vesting of restricted and performance-based restricted stock units | 80 | 7 | ||||||
| Common shares withheld for taxes | (4,107 | ) | (6,623 | ) | ||||
| Net cash used in financing activities | (44,034 | ) | (6,616 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 55,528 | (184,613 | ) | |||||
| Cash and cash equivalents at beginning of period | 64,973 | 268,783 | ||||||
| Cash and cash equivalents at end of period | $ | 120,501 | $ | 84,170 | ||||
