Five Below, Inc. (NASDAQ: FIVE) today announced financial results
for the first quarter ended April 29, 2023.
For the first quarter
ended April 29,
2023:
- Net sales increased
by 13.5% to $726.2 million from $639.6 million in the first quarter
of fiscal 2022; comparable sales increased by 2.7% versus the first
quarter of fiscal 2022.
- The Company opened
27 new stores and ended the quarter with 1,367 stores in 43 states.
This represents an increase in stores of 11.6% from the end of the
first quarter of fiscal 2022.
- Operating income was
$42.4 million compared to $42.3 million in the first quarter of
fiscal 2022.
- The effective tax
rate was 18.6% compared to 22.3% in the first quarter of fiscal
2022.
- Net income was $37.5
million compared to $32.7 million in the first quarter of fiscal
2022.
- Diluted income per
common share was $0.67 compared to $0.59 in the first quarter of
fiscal 2022. The benefit from share-based accounting was
approximately $0.06 in the first quarter of fiscal 2023 compared to
approximately $0.03 in the first quarter of fiscal 2022.
Joel Anderson, President and CEO of Five Below, said, “We are
pleased with our first quarter results that were in line with our
outlook highlighted by a 3.9% comp transaction increase. While our
customers face multiple macro headwinds, we continue to be there
for them, flexing our offering to bring them the Wow products they
need and want. Our broad-based sales performance and transaction
trends demonstrate that we are gaining trips and customers through
our amazing value, trend-right products and Five Beyond
prototype.”
Mr. Anderson continued, “Looking to the rest of the year, we
remain focused on playing offense to drive increased market share.
We now plan to open a record 200-plus new stores and complete over
400 conversions to the new Five Beyond prototype in 2023 while
building a strong pipeline of new stores for 2024. With the
headwinds of the pandemic moderating, combined with our continued
experience and efficiency-based initiatives, we believe we are
well-positioned to continue our high growth."
Second Quarter and Fiscal 2023
Outlook:The Company expects the following results
for the second quarter and full year fiscal 2023:
For the second quarter of Fiscal
2023:
- Net sales are expected to be in the
range of $755 million to $765 million based on opening
approximately 40 new stores and assuming an approximate 2% to 3%
increase in comparable sales.
- Net income is expected to be in the
range of $44 million to $48 million.
- Diluted income per common share is
expected to be in the range of $0.80 to $0.85 on approximately 55.9
million diluted weighted average shares outstanding.
For the full year of Fiscal
2023:
- Net sales are expected to be in the
range of $3.50 billion to $3.57 billion based on opening over 200
new stores and assuming an approximate 1% to 3% increase in
comparable sales.
- Net income is expected to be in the
range of $297 million to $319 million.
- Diluted income per common share is
expected to be in the range of $5.31 to $5.71 on approximately 55.9
million diluted weighted average shares outstanding.
- The 53rd week is expected to contribute
approximately $40 million in sales and approximately $0.08 in
diluted income per common share.
- Gross capital expenditures are expected
to be approximately $335 million in fiscal 2023.
Conference Call Information:
A conference call to discuss the financial
results for the first quarter of fiscal 2023 is scheduled for
today, June 1, 2023, at 4:30 p.m. Eastern Time. Investors and
analysts interested in participating in the call are invited to
dial 412-902-6753 approximately 10 minutes prior to the start of
the call. A live audio webcast of the conference call will be
available online at investor.fivebelow.com, where a replay will be
available shortly after the conclusion of the call.
Forward-Looking Statements:This news release
includes forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 as contained in
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, which reflect management's current
views and estimates regarding the Company's industry, business
strategy, goals and expectations concerning its market position,
future operations, margins, profitability, capital expenditures,
liquidity and capital resources, store count potential and other
financial and operating information. Investors can identify these
statements by the fact that they use words such as "anticipate,"
"assume," "believe," "continue," "could," "estimate," "expect,"
"intend," "may," "plan," "potential," "predict," "project,"
"future" and similar terms and phrases. The Company cannot assure
investors that future developments affecting the Company will be
those that it has anticipated. Actual results may differ materially
from these expectations due to risks related to disruption to the
global supply chain, risks related to the Company's strategy and
expansion plans, risks related to disruptions in our information
technology systems and our ability to maintain and upgrade those
systems, risks related to the inability to successfully implement
our online retail operations, risks related to cyberattacks or
other cyber incidents, risks related to our ability to select,
obtain, distribute and market merchandise profitably, risks related
to our reliance on merchandise manufactured outside of the United
States, the availability of suitable new store locations and the
dependence on the volume of traffic to our stores, risks related to
changes in consumer preferences and economic conditions, risks
related to increased operating costs, including wage rates, risks
related to inflation and increasing commodity prices, risks related
to potential systematic failure of the banking system in the United
States or globally, risks related to extreme weather, pandemic
outbreaks (in addition to COVID-19), global political events, war,
terrorism or civil unrest (including any resulting store closures,
damage, or loss of inventory), risks related to leasing, owning or
building distribution centers, risks related to our ability to
successfully manage inventory balance and inventory shrinkage,
quality or safety concerns about the Company's merchandise,
increased competition from other retailers including online
retailers, risks related to the seasonality of our business, risks
related to our ability to protect our brand name and other
intellectual property, risks related to customers' payment methods,
risks related to domestic and foreign trade restrictions including
duties and tariffs affecting our domestic and foreign suppliers and
increasing our costs, including, among others, the direct and
indirect impact of current and potential tariffs imposed and
proposed by the United States on foreign imports, risks associated
with the restrictions imposed by our indebtedness on our current
and future operations, the impact of changes in tax legislation and
accounting standards and risks associated with leasing substantial
amounts of space. For further details and a discussion of these
risks and uncertainties, see the Company's periodic reports,
including the annual report on Form 10-K, quarterly reports on Form
10-Q and current reports on Form 8-K, filed with or furnished to
the Securities and Exchange Commission and available at
www.sec.gov. If one or more of these risks or uncertainties
materialize, or if any of the Company's assumptions prove
incorrect, the Company's actual results may vary in material
respects from those projected in these forward-looking statements.
Any forward-looking statement made by the Company in this news
release speaks only as of the date on which the Company makes it.
Factors or events that could cause the Company's actual results to
differ may emerge from time to time, and it is not possible for the
Company to predict all of them. The Company undertakes no
obligation to publicly update any forward-looking statement,
whether as a result of new information, future developments or
otherwise, except as may be required by any applicable securities
laws.
About Five Below:Five Below is a leading
high-growth value retailer offering trend-right, high-quality
products loved by tweens, teens and beyond. We believe life is
better when customers are free to "let go & have fun" in an
amazing experience filled with unlimited possibilities. With most
items priced between $1 and $5, and some extreme value items priced
beyond $5 in our incredible Five Beyond offering, Five Below makes
it easy to say YES! to the newest, coolest stuff across eight
awesome Five Below worlds: Style, Room, Sports, Tech, Create,
Party, Candy and New & Now. Founded in 2002 and headquartered
in Philadelphia, Pennsylvania, Five Below today has over 1,367
stores in 43 states. For more information, please visit
www.fivebelow.com or find Five Below on Instagram, TikTok, Twitter
and Facebook @FiveBelow.
Investor Contact:Five Below, Inc.Christiane
PelzVice President, Investor Relations &
Treasury215-207-2658InvestorRelations@fivebelow.com
FIVE BELOW, INC. |
Consolidated Balance Sheets |
(Unaudited) |
(in thousands) |
|
|
|
April 29, 2023 |
|
January 28, 2023 |
|
April 30, 2022 |
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
335,286 |
|
$ |
332,324 |
|
$ |
120,501 |
Short-term investment securities |
|
|
88,241 |
|
|
66,845 |
|
|
189,140 |
Inventories |
|
|
534,389 |
|
|
527,720 |
|
|
504,182 |
Prepaid income taxes and tax receivable |
|
|
8,898 |
|
|
8,898 |
|
|
4,511 |
Prepaid expenses and other current assets |
|
|
116,689 |
|
|
130,592 |
|
|
87,280 |
Total current assets |
|
|
1,083,503 |
|
|
1,066,379 |
|
|
905,614 |
Property and equipment,
net |
|
|
944,375 |
|
|
925,530 |
|
|
799,765 |
Operating lease assets |
|
|
1,336,588 |
|
|
1,319,132 |
|
|
1,232,246 |
Long-term investment
securities |
|
|
— |
|
|
— |
|
|
10,182 |
Other assets |
|
|
16,043 |
|
|
13,870 |
|
|
12,973 |
|
|
$ |
3,380,509 |
|
$ |
3,324,911 |
|
$ |
2,960,780 |
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Line of credit |
|
$ |
— |
|
$ |
— |
|
$ |
— |
Accounts payable |
|
|
234,492 |
|
|
221,120 |
|
|
230,282 |
Income taxes payable |
|
|
27,751 |
|
|
19,928 |
|
|
35,767 |
Accrued salaries and wages |
|
|
13,390 |
|
|
25,420 |
|
|
13,089 |
Other accrued expenses |
|
|
135,463 |
|
|
136,316 |
|
|
140,849 |
Operating lease liabilities |
|
|
207,458 |
|
|
199,776 |
|
|
174,400 |
Total current liabilities |
|
|
618,554 |
|
|
602,560 |
|
|
594,387 |
Other long-term
liabilities |
|
|
4,626 |
|
|
4,296 |
|
|
3,807 |
Long-term operating lease
liabilities |
|
|
1,310,465 |
|
|
1,296,975 |
|
|
1,209,785 |
Deferred income taxes |
|
|
59,563 |
|
|
59,151 |
|
|
37,859 |
Total liabilities |
|
|
1,993,208 |
|
|
1,962,982 |
|
|
1,845,838 |
Shareholders’ equity: |
|
|
|
|
|
|
Common stock |
|
|
556 |
|
|
555 |
|
|
555 |
Additional paid-in capital |
|
|
248,677 |
|
|
260,784 |
|
|
242,607 |
Retained earnings |
|
|
1,138,068 |
|
|
1,100,590 |
|
|
871,780 |
Total shareholders’ equity |
|
|
1,387,301 |
|
|
1,361,929 |
|
|
1,114,942 |
|
|
$ |
3,380,509 |
|
$ |
3,324,911 |
|
$ |
2,960,780 |
FIVE BELOW, INC. |
Consolidated Statements of Operations |
(Unaudited) |
(in thousands, except share and per share data) |
|
|
Thirteen Weeks Ended |
|
April 29, 2023 |
|
April 30, 2022 |
Net sales |
$ |
726,247 |
|
$ |
639,596 |
|
Cost of goods sold |
|
491,443 |
|
|
432,819 |
|
Gross profit |
|
234,804 |
|
|
206,777 |
|
Selling, general and
administrative expenses |
|
192,392 |
|
|
164,448 |
|
Operating income |
|
42,412 |
|
|
42,329 |
|
Interest income (expense) and
other income (expense), net |
|
3,647 |
|
|
(237 |
) |
Income before income taxes |
|
46,059 |
|
|
42,092 |
|
Income tax expense |
|
8,581 |
|
|
9,374 |
|
Net income |
$ |
37,478 |
|
$ |
32,718 |
|
Basic income per common
share |
$ |
0.67 |
|
$ |
0.59 |
|
Diluted income per common
share |
$ |
0.67 |
|
$ |
0.59 |
|
Weighted average shares
outstanding: |
|
|
|
Basic shares |
|
55,650,375 |
|
|
55,647,200 |
|
Diluted shares |
|
55,777,010 |
|
|
55,834,287 |
|
FIVE BELOW, INC. |
Consolidated Statements of Cash Flows |
(Unaudited) |
(in thousands) |
|
|
|
Thirteen Weeks Ended |
|
|
April 29, 2023 |
|
April 30, 2022 |
Operating activities: |
|
|
|
|
Net income |
|
$ |
37,478 |
|
|
$ |
32,718 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
Depreciation and amortization |
|
|
29,186 |
|
|
|
23,977 |
|
Share-based compensation expense |
|
|
3,760 |
|
|
|
5,998 |
|
Deferred income tax expense |
|
|
412 |
|
|
|
1,703 |
|
Other non-cash expenses (income) |
|
|
36 |
|
|
|
(455 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
Inventories |
|
|
(6,669 |
) |
|
|
(49,078 |
) |
Prepaid income taxes and tax receivable |
|
|
— |
|
|
|
6,814 |
|
Prepaid expenses and other assets |
|
|
11,695 |
|
|
|
4,878 |
|
Accounts payable |
|
|
6,878 |
|
|
|
33,883 |
|
Income taxes payable |
|
|
7,823 |
|
|
|
7,671 |
|
Accrued salaries and wages |
|
|
(12,030 |
) |
|
|
(40,450 |
) |
Operating leases |
|
|
3,716 |
|
|
|
4,341 |
|
Other accrued expenses |
|
|
3,006 |
|
|
|
10,117 |
|
Net cash provided by operating activities |
|
|
85,291 |
|
|
|
42,117 |
|
Investing activities: |
|
|
|
|
Purchases of investment securities and other investments |
|
|
(77,848 |
) |
|
|
(5,005 |
) |
Sales, maturities, and redemptions of investment securities |
|
|
56,452 |
|
|
|
120,541 |
|
Capital expenditures |
|
|
(45,091 |
) |
|
|
(58,091 |
) |
Net cash (used in) provided by investing activities |
|
|
(66,487 |
) |
|
|
57,445 |
|
Financing activities: |
|
|
|
|
Repurchase and retirement of common stock |
|
|
— |
|
|
|
(40,007 |
) |
Proceeds from exercise of options to purchase common stock and
vesting of restricted and performance-based restricted stock
units |
|
|
26 |
|
|
|
80 |
|
Common shares withheld for taxes |
|
|
(15,868 |
) |
|
|
(4,107 |
) |
Net cash used in financing activities |
|
|
(15,842 |
) |
|
|
(44,034 |
) |
Net increase in cash and cash equivalents |
|
|
2,962 |
|
|
|
55,528 |
|
Cash and cash equivalents at
beginning of period |
|
|
332,324 |
|
|
|
64,973 |
|
Cash and cash equivalents at
end of period |
|
$ |
335,286 |
|
|
$ |
120,501 |
|
Five Below (NASDAQ:FIVE)
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부터 4월(4) 2024 으로 5월(5) 2024
Five Below (NASDAQ:FIVE)
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부터 5월(5) 2023 으로 5월(5) 2024