Five Below Reports Strong Holiday Season
Revenue growth in needs-based categories coupled with a boost in sales of seasonal products were key factors that drove growth through January 6 at Five Below during the retailer’s fourth quarter.
With the quarter and full fiscal year officially ending on February 3, officials with the retailer said net sales for the holiday period, which includes New Year’s Day, were up 15.6% to $1.16 billion. Comparable store sales over the period were up 3.6%.
“We saw broad-based strength in performance across most worlds and continued strong results from converted stores,” said Joel Anderson, president and CEO of Five Below. “Needs-based categories continued to outperform, as did our seasonal offering with the value and Wow! assortment of gifts and stocking stuffers resonating with customers. Based on our holiday results and forecast for January, we now expect to deliver fourth quarter sales in the upper half of our guidance range and are reiterating our EPS outlook."
The company's previously provided guidance given on its third quarter 2023 earnings call is below.
Fourth Quarter Fiscal 2023 Guidance
- Net sales of $1.32 billion to $1.35 billion
- An approximate 2% to 3% increase in comparable sales
- Diluted income per common share of $3.64 to $3.80 on approximately 55.4 million estimated diluted weighted average shares outstanding
Full Year Fiscal 2023 Guidance
- Net sales of $3.54 billion to $3.57 billion
- An approximate 2.5% increase in comparable sales
- Diluted income per common share of $5.40 to $5.56 on approximately 55.6 million estimated diluted weighted average shares outstanding
Anderson noted the company completed its fiscal 2023 store openings with a record 204 net new stores. The pipeline, he said, is strong for 2024 as the company works on several initiatives including additional store opening, growing product and brand strategy, and optimizing inventory.