![]() Bull said Five Below ended the year with about $400 million in cash, nearly $528 million in inventory and no debt.Īnalysts had a mostly positive response to Five Below’s earnings report and guidance. ![]() If all the planned openings come to fruition, Five Below will end the year with 1,540 stores. This quirk is expected to generate an additional $40 million in sales. Bull also noted that 2023 has 53 weeks for reporting purposes. Net income for the year is expected to range from $295 million to $323 million. That forecast is based on the plan to open 200 new stores and assumes a 1% to 4% increase in comp sales. For the year, net sales are expected to range from $3.49 billion to $3.59 billion. Ahead of the most recent holiday season, the company also introduced the option to buy online, pick up in store.īull said the company’s guidance reflects the ongoing economic uncertainty. Five Below’s consumable categories include candy, snacks, health and beauty products and travel items. That reflects retail industry trends that have seen consumers ease their discretionary spending. Some Five Beyond locations also began offering ear piercing last year, along with helium balloons, which advance the company into the party and gift space.Īnderson said consumable items led sales in the last 12 months. Bull will also serve as chief financial officer while the company selects a new person for the CFO position.įive Below positions itself uniquely in the discount retail market by focusing on both needs and trendy discretionary items, like Squishmallows, Funko toys, and fidget spinners that appeal to a younger demographic. However, the company said its cadence of store openings will be slower than last year.ĭue to landlord and permitting-related issues, “we expect to open approximately one-third of our new stores in the first half of 2023 compared to over 40% in the first half of 2022,” said Ken Bull, who was promoted this week to COO. And ultimately, “our goal is for Five Beyond everywhere,” said Anderson. The company will also open 200 stores in 2023.Īnderson told investors on the company’s earnings call that customers who buy a Five Beyond item, priced at $6 or higher, “spend over twice as much as those who buy only Five Below items.” That is one reason the company wants to introduce the concept to 400 stores this year. Over the last year, the company converted nearly 250 of its more than 1,300 stores to the new format, which offers items above the company’s signature $5 price point. CEO Joel Anderson said on a call with analysts that the company is expanding its Five Beyond store-in-store concept.Operating income fell to $345 million, from $379.9 million last year, as did net income, which fell to $261.5 million, down from $278.8 million year over year. For the full year, although comp sales decreased 2% year over year, Five Below’s net sales rose 8% to nearly $3.1 billion, up from $2.84 billion.The retailer reported an increase in both operating and net income, which reached $225.8 million and $171.3 million, respectively. Quarterly comp sales rose nearly 2% year over year. Five Below’s Q4 net sales rose to $1.12 billion, up nearly 13% year over year, the company reported Wednesday. ![]()
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