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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