Five Below, Inc. Announces Fourth Quarter and Fiscal 2024 Financial Results
Net Sales Increase of 7.8% for Q4 and 10.4% for Fiscal 2024 ex the 53rd week
GAAP Diluted EPS of $3.39 for Q4 and $4.60 for Fiscal 2024
Adjusted Diluted EPS of $3.48 for Q4 and $5.04 for Fiscal 2024
Philadelphia, PA — Five Below, Inc. announced financial results for the fourth quarter and full year of fiscal 2024 ended February 1, 2025.
The fourth quarter and full year of fiscal 2023 ended February 3, 2024 contained one additional week (“53rd week”), which represented $48.1 million in net sales and approximately $0.15 in diluted earnings per share.
For the fourth quarter ended February 1, 2025:
- Net sales increased by 4.0% to $1.39 billion from $1.34 billion in the fourth quarter of fiscal 2023 or an increase of 7.8% when excluding the impact of the 53rd week in fiscal 2023; comparable sales decreased by 3.0%.
- The Company opened 22 net new stores and ended the quarter with 1,771 stores in 44 states. This represents an increase in stores of 14.7% from the end of the fourth quarter of fiscal 2023.
- Operating income was $246.8 million compared to $268.4 million in the fourth quarter of fiscal 2023. Adjusted operating income(1) was $253.3 million or a decrease of 1.5% when excluding the impact of the 53rd week in fiscal 2023.
- The effective tax rate was 25.2% compared to 25.8% in the fourth quarter of fiscal 2023.
- Net income was $187.5 million compared to $202.2 million in the fourth quarter of fiscal 2023. Adjusted net income(1) was $192.4 million or a decrease of 0.7% when excluding the impact of the 53rd week in fiscal 2023.
- Diluted income per common share was $3.39 compared to $3.65 in the fourth quarter of fiscal 2023. Adjusted diluted income per common share(1) was $3.48 or a decrease of 0.6% when excluding the impact of the 53rd week in fiscal 2023.
(1) A reconciliation of adjusted gross profit, adjusted operating income, adjusted net income, and adjusted diluted income per common share to the most directly comparable financial measure presented in accordance with accounting principles generally accepted in the United States (“GAAP”) is set forth in the schedule accompanying this release. See also “Non-GAAP Information.”
Ken Bull, COO, said “We were pleased to end the year with fourth quarter sales and EPS above our outlook. We entered the holiday period with the goal of showcasing more newness with key trend-right, value product, while also improving our operational execution and in-store experience. We were very encouraged to see early positive results from our teams’ efforts and are excited to build on this in 2025 with Winnie at the helm.”
Winnie Park, CEO, said, “It has been a busy three months at Five Below. We are executing our key strategies around product, value and store experience, and doing so with a sharpened focus on our core customer – the kid and the kid in all of us. We have a unique opportunity to deliver amazing value across a curated assortment featuring consistent newness with simplified pricing. Our focus on affordability and value is not just a strategy; it’s a promise to our customers that Five Below is a place where they can find joy and excitement at WOW prices. This is the true magic of Five Below.”
For the fiscal year ended February 1, 2025:
- Net sales increased by 8.9% to $3.88 billion from $3.56 billion in fiscal 2023 or an increase of 10.4% when excluding the impact of the 53rd week in fiscal 2023; comparable sales decreased by 2.7%.
- The Company opened 227 net new stores compared to 204 net new stores in fiscal 2023.
- Operating income was $323.8 million compared to $385.6 million in fiscal 2023. Adjusted operating income(2) was $356.1 million or a decrease of 4.8% when excluding the impact of the 53rd week in fiscal 2023.
- The effective tax rate was 25.1% compared to 24.9% in fiscal 2023.
- Net income was $253.6 million compared to $301.1 million in fiscal 2023. Adjusted net income(2) was $277.8 million or a decrease of 5.1% when excluding the impact of the 53rd week in fiscal 2023.
- Diluted income per common share was $4.60 compared to $5.41 in fiscal 2023. The benefit from share-based accounting was approximately $0.01 in fiscal 2024 compared to approximately $0.07 in fiscal 2023. Adjusted diluted income per common share(2) was $5.04 or a decrease of 4.2% when excluding the impact of the 53rd week in fiscal 2023.
- The Company repurchased approximately 267,000 shares in fiscal 2024 at a cost of approximately $40.0 million.
(2) A reconciliation of adjusted gross profit, adjusted operating income, adjusted net income, and adjusted diluted income per common share to the most directly comparable financial measure presented in accordance with accounting principles generally accepted in the United States (“GAAP”) is set forth in the schedule accompanying this release. See also “Non-GAAP Information.”
First Quarter and Fiscal 2025 Outlook:
The Company expects the following results for the first quarter and full year of fiscal 2025. This guidance includes the expected impact of tariffs currently in place.
For the first quarter of Fiscal 2025:
- Net sales are expected to be in the range of $905 million to $925 million based on opening approximately 50 new stores and assuming an approximate flat to 2% increase in comparable sales.
- Net income is expected to be in the range of $25 million to $31 million. Adjusted net income(3) is expected to be in the range of $28 million to $34 million.
- Diluted income per common share is expected to be in the range of $0.44 to $0.55 on approximately 55.3 million diluted weighted average shares outstanding. Adjusted diluted income per common share(3) is expected to be in the range of $0.50 to $0.61.
- This outlook does not include the impact of share repurchases, if any.
(3) Adjusted net income and adjusted diluted income per common share exclude the impact of nonrecurring or non-cash items which includes retention awards, costs incurred with the strategic acquisition of certain leases and on-going execution of the inventory write-off.
For the full year of Fiscal 2025:
- Net sales are expected to be in the range of $4.21 billion to $4.33 billion based on opening approximately 150 new stores and assuming an approximate flat to 3% increase in comparable sales.
- Net income is expected to be in the range of $216 million to $250 million. Adjusted net income(4) is expected to be in the range of $227 million to $261 million.
- Diluted income per common share is expected to be in the range of $3.90 to $4.52 on approximately 55.4 million diluted weighted average shares outstanding. Adjusted diluted income per common share(4) is expected to be in the range of $4.10 to $4.72.
- Gross capital expenditures are expected to be approximately $210 million to $230 million in fiscal 2025.
- This outlook does not include the impact of share repurchases, if any.
(4) Adjusted net income and adjusted diluted income per common share exclude the impact of nonrecurring or non-cash items which includes retention awards, costs incurred with the strategic acquisition of certain leases and on-going execution of the inventory write-off.
| FIVE BELOW, INC. | ||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (in thousands, except share and per share data) | ||||||||||||||||
| Thirteen Weeks Ended |
Fourteen Weeks Ended |
Fifty-Two Weeks Ended |
Fifty-Three Weeks Ended |
|||||||||||||
| February 1, 2025 | February 3, 2024 | February 1, 2025 | February 3, 2024 | |||||||||||||
| Net sales | $ | 1,390,885 | $ | 1,337,736 | $ | 3,876,527 | $ | 3,559,369 | ||||||||
| Cost of goods sold (exclusive of items shown separately below) | 831,571 | 786,122 | 2,523,865 | 2,285,544 | ||||||||||||
| Selling, general and administrative expenses | 267,036 | 246,078 | 861,398 | 757,507 | ||||||||||||
| Depreciation and amortization | 45,514 | 37,094 | 167,447 | 130,747 | ||||||||||||
| Operating income | 246,764 | 268,442 | 323,817 | 385,571 | ||||||||||||
| Interest income and other income, net | 3,996 | 4,107 | 14,848 | 15,530 | ||||||||||||
| Income before income taxes | 250,760 | 272,549 | 338,665 | 401,101 | ||||||||||||
| Income tax expense | 63,303 | 70,350 | 85,054 | 99,995 | ||||||||||||
| Net income | $ | 187,457 | $ | 202,199 | $ | 253,611 | $ | 301,106 | ||||||||
| Basic income per common share | $ | 3.41 | $ | 3.66 | $ | 4.61 | $ | 5.43 | ||||||||
| Diluted income per common share | $ | 3.39 | $ | 3.65 | $ | 4.60 | $ | 5.41 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic shares | 55,017,992 | 55,194,999 | 55,055,064 | 55,487,252 | ||||||||||||
| Diluted shares | 55,217,618 | 55,356,074 | 55,156,342 | 55,621,619 | ||||||||||||
| FIVE BELOW, INC. | ||||||||
| Consolidated Statements of Cash Flows | ||||||||
| (Unaudited) | ||||||||
| (in thousands) | ||||||||
| Fifty-Two Weeks Ended |
Fifty-Three Weeks Ended |
|||||||
| February 1, 2025 | February 3, 2024 | |||||||
| Operating activities: | ||||||||
| Net income | $ | 253,611 | $ | 301,106 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 167,447 | 130,747 | ||||||
| Share-based compensation expense | 15,589 | 17,859 | ||||||
| Deferred income tax expense | (6,852 | ) | 7,592 | |||||
| Other non-cash expenses | 1,312 | 351 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Inventories | (74,873 | ) | (56,907 | ) | ||||
| Prepaid income taxes and tax receivable | 185 | 4,064 | ||||||
| Prepaid expenses and other assets | (7,539 | ) | (26,651 | ) | ||||
| Accounts payable | 9,464 | 35,133 | ||||||
| Income taxes payable | 10,226 | 21,844 | ||||||
| Accrued salaries and wages | (10,285 | ) | 4,608 | |||||
| Operating leases | 45,891 | 51,515 | ||||||
| Other accrued expenses | 26,472 | 8,358 | ||||||
| Net cash provided by operating activities | 430,648 | 499,619 | ||||||
| Investing activities: | ||||||||
| Purchases of investment securities and other investments | (192,918 | ) | (416,649 | ) | ||||
| Sales, maturities, and redemptions of investment securities | 283,974 | 195,364 | ||||||
| Capital expenditures | (323,994 | ) | (335,050 | ) | ||||
| Net cash used in investing activities | (232,938 | ) | (556,335 | ) | ||||
| Financing activities: | ||||||||
| Net proceeds from issuance of common stock | 1,079 | 980 | ||||||
| Repurchase and retirement of common stock | (40,213 | ) | (80,541 | ) | ||||
| Proceeds from exercise of options to purchase common stock and vesting of restricted and performance-based restricted stock units | 340 | 288 | ||||||
| Common shares withheld for taxes | (6,947 | ) | (16,586 | ) | ||||
| Net cash used in financing activities | (45,741 | ) | (95,859 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 151,969 | (152,575 | ) | |||||
| Cash and cash equivalents at beginning of year | 179,749 | 332,324 | ||||||
| Cash and cash equivalents at end of year | $ | 331,718 | $ | 179,749 | ||||
| FIVE BELOW, INC. | ||||||||||||||||
| GAAP to Non-GAAP Reconciliation of Consolidated Statements of Operations | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (in thousands, except share and per share data) | ||||||||||||||||
| Reconciliation of gross profit to adjusted gross profit | ||||||||||||||||
| Thirteen Weeks Ended |
Fourteen Weeks Ended |
Fifty-Two Weeks Ended |
Fifty-Three Weeks Ended |
|||||||||||||
| February 1, 2025 | February 3, 2024 | February 1, 2025 | February 3, 2024 | |||||||||||||
| Gross profit(5) | $ | 559,314 | $ | 551,614 | $ | 1,352,662 | $ | 1,273,825 | ||||||||
| Adjustments: | ||||||||||||||||
| Retention awards(6) | 390 | — | 987 | — | ||||||||||||
| Non-recurring inventory write-off | 40 | — | 21,248 | — | ||||||||||||
| Cost-optimization initiatives(7) | 3,500 | — | 3,879 | — | ||||||||||||
| Adjusted gross profit(8) | $ | 563,244 | $ | 551,614 | $ | 1,378,776 | $ | 1,273,825 | ||||||||
| Reconciliation of operating income, as reported, to adjusted operating income | ||||||||||||||||
| Thirteen Weeks Ended |
Fourteen Weeks Ended |
Fifty-Two Weeks Ended |
Fifty-Three Weeks Ended |
|||||||||||||
| February 1, 2025 |
February 3, 2024 |
February 1, 2025 |
February 3, 2024 |
|||||||||||||
| Operating income, as reported | $ | 246,764 | $ | 268,442 | $ | 323,817 | $ | 385,571 | ||||||||
| Adjustments: | ||||||||||||||||
| Non-recurring employment-related litigation | — | — | 1,976 | — | ||||||||||||
| Retention awards(6) | 4,996 | — | 11,574 | — | ||||||||||||
| Non-recurring stock compensation benefit | (3,126 | ) | — | (9,243 | ) | — | ||||||||||
| Non-recurring inventory write-off | 267 | — | 21,475 | — | ||||||||||||
| Cost-optimization initiatives(7) | 4,430 | — | 5,974 | — | ||||||||||||
| Non-recurring asset disposal | — | — | 513 | — | ||||||||||||
| Adjusted operating income(8) | $ | 253,330 | $ | 268,442 | $ | 356,086 | $ | 385,571 | ||||||||
| Reconciliation of net income, as reported, to adjusted net income | ||||||||||||||||
| Thirteen Weeks Ended |
Fourteen Weeks Ended |
Fifty-Two Weeks Ended |
Fifty-Three Weeks Ended |
|||||||||||||
| February 1, 2025 |
February 3, 2024 |
February 1, 2025 |
February 3, 2024 |
|||||||||||||
| Net income, as reported | $ | 187,457 | $ | 202,199 | $ | 253,611 | $ | 301,106 | ||||||||
| Adjustments: | ||||||||||||||||
| Non-recurring employment-related litigation, net of tax | — | — | 1,480 | — | ||||||||||||
| Retention awards, net of tax(6) | 3,735 | — | 8,668 | — | ||||||||||||
| Non-recurring stock compensation benefit, net of tax | (2,337 | ) | — | (6,922 | ) | — | ||||||||||
| Non-recurring inventory write-off, net of tax | 199 | — | 16,083 | — | ||||||||||||
| Cost-optimization initiatives, net of tax(7) | 3,312 | — | 4,474 | — | ||||||||||||
| Non-recurring asset disposal, net of tax | — | — | 384 | — | ||||||||||||
| Adjusted net income(8) | $ | 192,366 | $ | 202,199 | $ | 277,776 | $ | 301,106 | ||||||||
| Reconciliation of diluted income per common share, as reported, to adjusted diluted income per common share | ||||||||||||||||
| Thirteen Weeks Ended |
Fourteen Weeks Ended |
Fifty-Two Weeks Ended |
Fifty-Three Weeks Ended |
|||||||||||||
| February 1, 2025 |
February 3, 2024 |
February 1, 2025 |
February 3, 2024 |
|||||||||||||
| Diluted income per common share, as reported | $ | 3.39 | $ | 3.65 | $ | 4.60 | $ | 5.41 | ||||||||
| Adjustments: | ||||||||||||||||
| Non-recurring employment-related litigation per share | — | — | 0.03 | — | ||||||||||||
| Retention awards per share(6) | 0.07 | — | 0.16 | — | ||||||||||||
| Non-recurring stock compensation benefit per share | (0.04 | ) | — | (0.13 | ) | — | ||||||||||
| Non-recurring inventory write-off per share | — | — | 0.29 | — | ||||||||||||
| Cost-optimization initiatives per share(7) | 0.06 | — | 0.08 | — | ||||||||||||
| Non-recurring asset disposal per share | — | — | 0.01 | — | ||||||||||||
| Adjusted diluted income per common share(8) | $ | 3.48 | $ | 3.65 | $ | 5.04 | $ | 5.41 | ||||||||
| (5) Gross profit,a non-GAAP financial measure,is equal to our net sales less our cost of goods sold. | ||||||||||||||||
| (6) Retention awards relate to the on-going expense recognition of cash and equity granted to certain individuals in fiscal 2024 during the CEO transition that will be earned and have vestings through fiscal 2026. | ||||||||||||||||
| (7) Represents charges related to the cost-optimization of certain functions. | ||||||||||||||||
| (8) Components may not add to total due to rounding. | ||||||||||||||||
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