Five Below Reports ‘Record’ Comp Sales Rise Of 13.8 Pct Amid Brick-And-Mortar Growth 

Off-price retailer Five Below, Inc. posted record comparable stores sales growth of 13.8 percent and a 25 percent jump in net sales, as its fourth-quarter results beat analyst expectations.

Five Below President and CEO Joel Anderson said in a call with analysts that the company opened two new stores in the fourth quarter for an overall 120 net new stores opened throughout 32 states last year.

“We ended the year with 1,020 stores, a nearly fivefold increase from when we went public in July of 2012 and leaving a long runway for growth to reach 2,500 plus total store potential we continue to see in the United States,” Anderson said on the call.

As for its overall results, Five Below reported $2.20 in diluted income per common share on $858.5 million in net sales. The results exceeded analyst estimates of $2.11 per share on $838 million in revenue.

Five Below anticipates net sales to be between $540 million and $560 million based on opening roughly 60 new retail locations for the first quarter of fiscal 2021. It also anticipates diluted income per common share to be between 56 cents and 68 cents on roughly 56.4 million diluted weighted average shares outstanding for that quarter.

“We enter 2021 … as we continue to invest in our foundation and in innovation across product, experience and supply chain, while returning to more normalized annual store growth. With plans to open 170 to 180 new stores,” Anderson said in an earnings announcement.

However, the company did not offer sales or earnings guidance for the full year of fiscal 2021, provided “the uncertainty related to COVID-19 and potential future shifts in consumer spending,” according to an earnings press release.

Off-Price Retailers Expand Retail Footprints

Five Below’s expansion plans come as off-price retailer Ross Stores opened four Ross Dress for Less® and three dd’s DISCOUNTS® stores across five states in February and March.

The new stores were part of the firm’s plans to bring approximately 60 new retail locations, which include 40 Ross stores and 20 dd’s DISCOUNTS stores, onto its roster in fiscal 2021.

“As we look out over the long-term, we remain confident that Ross can grow to 2,400 locations and dd’s DISCOUNTS can become a chain of 600 stores given consumers’ ongoing focus on value and convenience,” Group Executive Vice President, Property Development Gregg McGillis said in an announcement earlier in March.