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Five Below Reports First Quarter Fiscal 2025 Financial Results image

Five Below Reports First Quarter Fiscal 2025 Financial Results

Q1 Net Sales Increase of 19.5% to $970.5 million; Comparable Sales Increase of 7.1%

Q1 GAAP Diluted EPS of $0.75, Q1 Adjusted Diluted EPS of $0.86

Increases Full Year 2025 Sales Guidance; Raises Low End of EPS Guidance Range

Announces CFO Transition

Philadelphia, PA — Five Below reported  financial results for the first quarter ended May 3, 2025.

For the first quarter ended May 3, 2025:

  • Net sales increased by 19.5% to $970.5 million from $811.9 million in the first quarter of fiscal 2024; comparable sales increased by 7.1%.
  • The Company opened 55 new stores and ended the quarter with 1,826 stores in 44 states. This represents an increase in stores of 13.8% from the end of the first quarter of fiscal 2024.
  • Operating income was $50.8 million compared to $36.2 million in the first quarter of fiscal 2024. Adjusted operating income(1) was $59.6 million compared to $38.1 million in the first quarter of fiscal 2024.
  • The effective tax rate was 27.2% compared to 23.5% in the first quarter of fiscal 2024.
  • Net income was $41.1 million compared to $31.5 million in the first quarter of fiscal 2024. Adjusted net income(1) was $47.5 million compared to $33.0 million in the first quarter of fiscal 2024.
  • Diluted income per common share was $0.75 compared to $0.57 in the first quarter of fiscal 2024. Adjusted diluted income per common share(1) was $0.86 compared to $0.60 in the first quarter of fiscal 2024.
    (1) A reconciliation of 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.” 

Winnie Park, CEO of Five Below said, “Our first quarter results demonstrate the effectiveness of our strategy, grounded in trend-right product, extreme value and a fun store experience. We were pleased to see broad-based strength across the majority of our merchandising worlds, resulting in a transaction-driven 7.1% increase in comparable sales, as well as strong performance from our new stores. Our teams executed our customer-centric strategy at a very high level, and these results reflect the progress we are making across merchandising, marketing and end-to-end operations.”

Ms. Park continued, “Looking ahead, this unwavering focus on the core customer combined with disciplined execution of our strategy and the agility of our teams position us to deliver our financial and operational objectives as we navigate the impact of tariffs and the associated uncertainty in the current global trade environment.”

CFO Transition
The Company’s Chief Financial Officer and Treasurer, Kristy Chipman, has informed Five Below of her intention to step down for personal reasons.

“I want to thank Kristy for her partnership and the many contributions she has made to Five Below during her time here. We wish her the very best in her future endeavors,” said Ms. Park. “While we search for a new CFO, I am grateful our COO Ken Bull will also take on the role of interim CFO. Previously, Ken was our CFO for more than ten years, which gives us a seamless transition.”

Second Quarter and Fiscal 2025 Outlook:
The Company expects the following results for the second quarter and full year of fiscal 2025. This guidance includes the expected impact of tariffs currently in place.

For the second quarter of Fiscal 2025:

  • Net sales are expected to be in the range of $975 million to $995 million based on opening approximately 30 net new stores and assumes an approximate 7% to 9% increase in comparable sales.
  • Net income is expected to be in the range of $25 million to $32 million. Adjusted net income(2) 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 $0.45 to $0.57 on approximately 55.3 million diluted weighted average shares outstanding. Adjusted diluted income per common share(2) is expected to be in the range of $0.50 to $0.62.
  • This outlook does not include the impact of share repurchases, if any.
    (2) Adjusted net income and adjusted diluted income per common share exclude the impact of nonrecurring or non-cash items which includes retention awards and costs incurred with the strategic acquisition of certain leases, net of income tax impacts. 

For the full year of Fiscal 2025:

  • Net sales are expected to be in the range of $4.33 billion to $4.42 billion based on opening approximately 150 net new stores and assumes an approximate 3% to 5% increase in comparable sales.
  • Net income is expected to be in the range of $223 million to $249 million. Adjusted net income(3) is expected to be in the range of $235 million to $261 million.
  • Diluted income per common share is expected to be in the range of $4.04 to $4.51 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 $4.25 to $4.72.
  • Gross capital expenditures are expected to be approximately $210 million to $230 million.
  • 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 associated with cost-optimization initiatives, costs incurred with the strategic acquisition of certain leases and execution of the inventory write-off. 
FIVE BELOW, INC.
Consolidated Balance Sheets
(Unaudited)
(in thousands)
May 3,
2025
February 1,
2025
May 4,
2024
Assets
Current assets:
Cash and cash equivalents $ 427,462 $ 331,718 $ 96,308
Short-term investment securities 196,529 197,073 273,341
Inventories 702,053 659,500 629,981
Prepaid income taxes and tax receivable 4,649 4,649 4,834
Prepaid expenses and other current assets 142,429 158,427 146,004
Total current assets 1,473,122 1,351,367 1,150,468
Property and equipment, net 1,260,795 1,261,728 1,190,865
Operating lease assets 1,696,917 1,706,542 1,587,435
Other assets 21,968 19,937 18,536
$ 4,452,802 $ 4,339,574 $ 3,947,304
Liabilities and Shareholders’ Equity
Current liabilities:
Line of credit $ $ $
Accounts payable 276,505 260,343 221,789
Income taxes payable 72,365 51,998 51,551
Accrued salaries and wages 31,179 19,743 25,906
Other accrued expenses 176,750 149,495 150,335
Operating lease liabilities 304,950 274,863 292,048
Total current liabilities 861,749 756,442 741,629
Other long-term liabilities 8,049 8,210 8,234
Long-term operating lease liabilities 1,670,168 1,706,704 1,546,157
Deferred income taxes 54,774 59,891 66,623
Total liabilities 2,594,740 2,531,247 2,362,643
Shareholders’ equity:
Common stock 549 549 550
Additional paid-in capital 161,058 152,471 150,948
Retained earnings 1,696,455 1,655,307 1,433,163
Total shareholders’ equity 1,858,062 1,808,327 1,584,661
$ 4,452,802 $ 4,339,574 $ 3,947,304
FIVE BELOW, INC.
Consolidated Statements of Operations
(Unaudited)
(in thousands, except share and per share data)
Thirteen Weeks Ended
May 3,
2025
May 4,
2024
Net sales $ 970,527 $ 811,863
Cost of goods sold (exclusive of items shown separately below) 646,614 548,343
Selling, general and administrative expenses 226,502 190,186
Depreciation and amortization 46,564 37,184
Operating income 50,847 36,150
Interest income and other income 5,647 4,990
Income before income taxes 56,494 41,140
Income tax expense 15,346 9,673
Net income $ 41,148 $ 31,467
Basic income per common share $ 0.75 $ 0.57
Diluted income per common share $ 0.75 $ 0.57
Weighted average shares outstanding:
Basic shares 55,045,966 55,168,657
Diluted shares 55,189,813 55,255,838
FIVE BELOW, INC.
Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
Thirteen Weeks Ended
May 3,
2025
May 4,
2024
Operating activities:
Net income $ 41,148 $ 31,467
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 46,564 37,184
Share-based compensation expense 9,859 5,061
Deferred income tax expense (5,117 ) (120 )
Other non-cash expenses 94 120
Changes in operating assets and liabilities:
Inventories (42,553 ) (45,354 )
Prepaid expenses and other assets 13,931 6,393
Accounts payable 14,733 (36,353 )
Income taxes payable 20,367 9,779
Accrued salaries and wages 11,436 (4,122 )
Operating leases 3,176 21,636
Other accrued expenses 19,024 748
Net cash provided by operating activities 132,662 26,439
Investing activities:
Purchases of investment securities and other investments (82,393 ) (4,508 )
Sales, maturities, and redemptions of investment securities 82,938 19,296
Capital expenditures (36,209 ) (87,866 )
Net cash used in investing activities (35,664 ) (73,078 )
Financing activities:
Repurchase and retirement of common stock (30,151 )
Proceeds from exercise of options to purchase common stock and vesting of restricted and performance-based restricted stock units 1
Common shares withheld for taxes (1,254 ) (6,652 )
Net cash used in financing activities (1,254 ) (36,802 )
Net increase (decrease) in cash and cash equivalents 95,744 (83,441 )
Cash and cash equivalents at beginning of period 331,718 179,749
Cash and cash equivalents at end of period $ 427,462 $ 96,308
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
May 3,
2025
May 4,
2024
Gross profit(4) $ 323,913 $ 263,520
Adjustments:
Retention awards(5) 390
Cost-optimization initiatives(6) 4,100
Adjusted gross profit(7) $ 328,403 $ 263,520
Reconciliation of operating income, as reported, to adjusted operating income
Thirteen Weeks Ended
May 3, 2025 May 4, 2024
Operating income, as reported $              50,847 $              36,150
Adjustments:
Non-recurring employment-related litigation                         —                   1,976
Retention awards(5)                   2,937                         —
Non-recurring inventory write-off                      830                         —
Cost-optimization initiatives(6)                   4,960                         —
Adjusted operating income(7) $              59,574 $              38,126
Reconciliation of net income, as reported, to adjusted net income
Thirteen Weeks Ended
May 3, 2025 May 4, 2024
Net income, as reported $              41,148 $              31,467
Adjustments:
Non-recurring employment-related litigation, net of tax                         —                   1,510
Retention awards, net of tax(5)                   2,139                         —
Non-recurring inventory write-off, net of tax                      605                         —
Cost-optimization initiatives, net of tax(6)                   3,612                         —
Adjusted net income(7) $              47,505 $              32,977
Reconciliation of diluted income per common share, as reported, to adjusted diluted income per common share
Thirteen Weeks Ended
May 3,
2025
May 4,
2024
Diluted income per common share, as reported $ 0.75 $ 0.57
Adjustments:
Non-recurring employment-related litigation per share 0.03
Retention awards per share(5) 0.04
Non-recurring inventory write-off per share 0.01
Cost-optimization initiatives per share(6) 0.07
Adjusted diluted income per common share(7) $ 0.86 $ 0.60

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