PHILADELPHIA — Five Below Inc., a retail chain catering to middle schoolers and teenagers, raised its full-year guidance for the second time this year after posting third-quarter sales that topped expectations.
Net sales rose 23% to $1 billion, and comparable-store sales increased 14%.
“Our customers continue to recognize Five Below as the destination for the kid and the kid in all of us,” CEO Winnie Park said on a December 3 call with analysts. “I’m really proud of the work our teams are doing in support of our boss, the customer. We are seeing clear proof points that our customer-centric strategy is working.”
The company said holiday season sales have been strong, including the Black Friday weekend.
Five Below said its store count increased 9% in the quarter to November 1 with the addition of 49 stores. “We ended the quarter with over 1,900 stores,” Park said. “The success of our new store openings continued into the fourth quarter with our entry into the Pacific Northwest, where each of our eight new stores set all-time grand opening records."
The specialty retailer planned to add 150 new stores this year, which Park said are contributing to improved sales, along with more efficient inventory planning.
“Notably, all these grand openings were supported by marketing and in-store activations that drew thousands of customers on opening day,” Park told analysts. “The strong positive reception to Five Below in these new markets strengthens the conviction we have for the significant growth ahead of us.”
Bill Schiffner
Five Below expects to open 14 net new stores in the current quarter and to post net sales of $1.58 billion to $1.61 billion. Comps are expected to rise between 6% and 8%.
For the full fiscal 2025, Five Below now projects net sales of $4.62 billion to $4.65 billion, assuming comparable-store sales growth of 9.4% to 10.1%.
Park is wrapping up her first year at the helm after transitioning from her role as CEO of Forever 21 to lead Five Below’s new growth phase. She has focused on delivering affordable toys, t-shirts, gifts, gags, candy, cheap sunglasses, and iPhone chargers, most priced at $5 or less, for parents and children, to become a shopping reference for kids from elementary through high school. This approach will allow Five Below to build a lasting relationship with its customers from a young age, she said.
“Today, value is not just about $5 and below, but ensuring we pack value into $7, $10 and $15-plus items,” Park said on the earnings call. “We are able to incorporate these multiple price points throughout the departments in the store to simplify the shopping experience, and our customers have responded well.”
