Five Below, Inc. (NASDAQ:FIVE) Financial Performance and Future Outlook

• Reported a 7.8% increase in net sales in the fourth quarter, reaching approximately $1.39 billion.
• Opened 22 new stores in Q4, contributing to a 14.7% increase in store count from the previous year.
• Expects net sales between $4.21 billion and $4.33 billion for fiscal 2025, with plans to open approximately 150 new stores.

Five Below, Inc. (NASDAQ:FIVE) is a leading retailer offering a wide range of products priced at $5 and below, targeting teens and pre-teens. The company operates over 1,700 stores across 44 states, providing affordable and trendy merchandise. Five Below competes with other discount retailers like Dollar Tree and Dollar General, focusing on delivering value and excitement to its customers.

In the fourth quarter, Five Below reported a 7.8% increase in net sales, reaching approximately $1.39 billion, as highlighted by the company's earnings report. Despite a 3.0% decrease in comparable sales, the company opened 22 new stores, contributing to a 14.7% increase in store count from the previous year. The company's gross profit for the quarter was $563.24 million, with a cost of revenue at $827.64 million.

The company's operating income for Q4 was $246.8 million, slightly down from the previous year's $268.4 million. Adjusted operating income was $253.3 million, a 1.5% decrease when excluding the 53rd week. Five Below's net income for the quarter was $187.5 million, with an adjusted net income of $192.4 million, reflecting a 0.7% decrease excluding the extra week. The effective tax rate decreased slightly to 25.2%.

For fiscal 2024, Five Below achieved a 10.4% increase in net sales, excluding the impact of an extra week in fiscal 2023, totaling $3.88 billion. The company opened 227 new stores, compared to 204 in the previous year. Operating income for the year was $323.8 million, with adjusted operating income at $356.1 million, a 4.8% decrease excluding the 53rd week. Net income was $253.6 million, with adjusted net income at $277.8 million, a 5.1% decrease excluding the extra week.

Looking ahead to fiscal 2025, Five Below expects net sales between $4.21 billion and $4.33 billion, with plans to open approximately 150 new stores. The company anticipates net income between $216 million and $250 million, with adjusted net income ranging from $227 million to $261 million. Diluted income per share is projected to be between $3.90 and $4.52, with adjusted diluted income per share expected to range from $4.10 to $4.72. COO Ken Bull and CEO Winnie Park remain optimistic about the company's future, focusing on new product offerings and operational improvements.