Financial Data and Key Metrics Changes - Sales for Q1 2024 increased by 11.8% to $811.9 million from $726.2 million in Q1 2023, while comparable sales decreased by 2.3% [14][39] - Gross margin increased by approximately 20 basis points to 32.5%, driven primarily by lower inbound freight costs [15] - Adjusted net income for Q1 2024 was $33.0 million, down from $37.5 million in Q1 2023, with adjusted diluted earnings per share at $0.60 compared to $0.67 [40] Business Line Data and Key Metrics Changes - The company opened 61 new stores in Q1 2024, compared to 27 in Q1 2023, ending the quarter with 1,605 stores, a 17% increase year-over-year [39] - The Five Beyond format stores outperformed non-converted stores by mid-single digits in both sales and transactions [34] Market Data and Key Metrics Changes - The company noted a decline in consumer spending across all demographics, particularly in lower-income cohorts, which negatively impacted sales [5][29] - The company is seeing a shift in consumer behavior, with higher-income customers trading down for value, while lower-income customers are more cautious with discretionary spending [5][30] Company Strategy and Development Direction - The company aims to open approximately 230 new stores by the end of 2024, with a long-term goal of reaching 3,500 locations by 2030 [8] - Focus on driving sales and cost optimization to maximize margins, including inventory optimization and shrink mitigation efforts [6][11] - The company is implementing pricing tests and marketing strategies to enhance customer engagement and drive sales [31][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging macroeconomic environment affecting consumer spending and adjusted guidance for the year accordingly [12][70] - The company remains committed to its strategic pillars and believes in a long runway for growth despite current challenges [32][37] Other Important Information - The company has a strong balance sheet with approximately $370 million in cash and no debt [40] - Inventory at the end of Q1 2024 was approximately $630 million, up from $534 million a year earlier, with a focus on managing inventory levels effectively [16][40] Q&A Session Summary Question: What is the impact of price increases on customer behavior? - Management noted that Five Beyond has performed well in lower-income stores, indicating that customers see value in the offerings despite price increases [48] Question: How does the company plan to stabilize comps? - Management indicated that initiatives in merchandising, pricing tests, and marketing strategies are expected to help stabilize comps by the second half of the year [54] Question: What are the implications of the current macro backdrop on sales? - Management acknowledged that the decline in sales was broad-based and not solely due to competition, with a significant drop occurring after Easter [74][110] Question: How is the company addressing shrink? - The company has implemented associate-led checkouts across the chain and is evaluating additional measures in high-shrink stores, with positive early results [66][134] Question: What is the outlook for gross margin and operating margin? - Management expects gross margin to decline in Q2 but anticipates improvements in Q3 and Q4 as cost optimization initiatives take effect [127][124]

Five Below (FIVE) came out with quarterly earnings of $0.60 per share, missing the Zacks Consensus Estimate of $0.62 per share. This compares to earnings of $0.67 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of -3.23%. A quarter ago, it was expected that this discount retailer would post earnings of $3.78 per share when it actually produced earnings of $3.65, delivering a surprise of -3.44%. Over the last four quarters, the ...

Financial Performance - Q1 net sales increased by 11.8% to $811.9 million compared to $726.2 million in Q1 fiscal 2023; comparable sales decreased by 2.3%[5] - Operating income was $36.2 million, down from $42.4 million in Q1 fiscal 2023; adjusted operating income would have been $38.2 million excluding a $2.0 million non-recurring expense[5] - Net income for Q1 was $31.5 million, compared to $37.5 million in Q1 fiscal 2023; adjusted net income would have been $33.0 million excluding the non-recurring expense[5] - Diluted EPS was $0.57, down from $0.67 in Q1 fiscal 2023; adjusted diluted EPS would have been $0.60 excluding the non-recurring expense[5] - Operating income decreased to $36,150,000, down 14.5% from $42,412,000 in the prior year[19] - Net income for the period was $31,467,000, a decline of 16.0% from $37,478,000 year-over-year[19] - Basic and diluted income per common share both decreased to $0.57, down from $0.67 in the same quarter last year[19] Future Projections - For Q2 fiscal 2024, net sales are expected to be in the range of $830 million to $850 million, with a mid-single digit decrease in comparable sales anticipated[6] - Full year fiscal 2024 net sales are projected to be between $3.79 billion and $3.87 billion, assuming a 3% to 5% decrease in comparable sales[12] - Full year fiscal 2024 net income is expected to range from $275 million to $297 million; adjusted net income is projected to be between $277 million and $299 million[12] Capital Expenditures and Investments - Gross capital expenditures for fiscal 2024 are expected to be approximately $345 million to $355 million[12] - Net cash used in investing activities totaled $73,078,000, compared to $66,487,000 in the same period last year[21] - The company repurchased and retired common stock amounting to $30,151,000 during the quarter[21] Cash Flow and Liquidity - Net cash provided by operating activities was $26,439,000, significantly lower than $85,291,000 in the prior year[21] - Cash and cash equivalents at the end of the period were $96,308,000, down from $335,286,000 at the end of the same quarter in 2023[21] - The company experienced a net decrease in cash and cash equivalents of $83,441,000 during the quarter[21] Inventory Management - Inventories increased by $45,354,000, compared to a decrease of $6,669,000 in the prior year[21] Taxation - The effective tax rate for Q1 was 23.5%, compared to 18.6% in Q1 fiscal 2023[5]

Q1 Net Sales Increase of 11.8% to $811.9 million GAAP Diluted EPS of $0.57; Adjusted Diluted EPS of $0.60 Updates Full Year 2024 Guidance PHILADELPHIA, PA, June 05, 2024 (GLOBE NEWSWIRE) -- Five Below, Inc. (NASDAQ: FIVE) today announced financial results for the first quarter ended May 4, 2024. For the first quarter ended May 4, 2024: Joel Anderson, President and CEO of Five Below, said, "While our first quarter sales were disappointing, disciplined cost management enabled us to deliver adjusted EPS within ...

Joel Anderson, President and CEO of Five Below, said, "While our first quarter sales were disappointing, disciplined cost management enabled us to deliver adjusted EPS within our earnings outlook. Needs-based items such as those in our Candy, Food and Beauty departments outperformed expectations and drove positive sales results. We also saw positive comparable sales from our higher income customers; however, the macro environment disproportionately impacted our core lower income customers, resulting in over ...

Five Below, Inc. (FIVE) is likely to register an increase in the top line when it reports first-quarter fiscal 2024 results on Jun 5 after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $832.7 million, which suggests an improvement of 14.7% from the prior-year reported figure. Over the past seven days, the Zacks Consensus Estimate for first-quarter earnings per share has decreased by a penny to 63 cents. The figure indicates decline of 6% from the prior-year quarter. This extreme-v ...

This discount retailer is expected to post quarterly earnings of $0.63 per share in its upcoming report, which represents a year-over-year change of -6%. Revenues are expected to be $832.73 million, up 14.7% from the year-ago quarter. Estimate Revisions Trend The consensus EPS estimate for the quarter has been revised 0.44% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. The ...

PHILADELPHIA, PA, May 15, 2024 (GLOBE NEWSWIRE) -- Five Below, Inc. (NASDAQ:FIVE), the trend- right, high-quality, extreme-value retailer for tweens, teens and beyond, today announced that its financial results for the first quarter of fiscal 2024 will be released after market close on Wednesday, June 5, 2024. The company will host a conference call at 4:30 p.m. Eastern Time to discuss the financial results. Investors and analysts interested in participating in the call are invited to dial 412-902-6753 appr ...

4 Stocks Wall Street Just Thumbed Up Thinkstock A big chunk of the S&P 500’s return is attributable to a handful of huge tech stocks. In fact, almost 40% of it comes from just seven companies. But don’t fret if you feel you’ve missed the boat on those magnificent stocks. They are not the only game in town.Four New Stock Upgrades Investors Might ConsiderIn fact, Wall Street has some new ideas for investors looking for opportunities to potentially grow portfolios.A number of investment firms upgraded their ...

A month has gone by since the last earnings report for Five Below (FIVE) . Shares have lost about 14% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Five Below due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Five Below Earnings and Sales Miss Estimates in Q4Five ...