The company has made an excellent start to fiscal 2021, with sales and earnings topping the expectations of analysts and is on course to open 170 and 180 stores.
The tween and teen value retailer opened 67 net new stores during the quarter, and now has a total of 1.087 stores. The opening took place across various states that included Utah, its 39th state.
“We continued to invest in our growth,” said CEO Joel Anderson. “Six of these new stores finished in the top 25 of all spring grand openings.”
Five Below reported net earnings of $49.6M, or $0.88 a share, in the quarter ended 1 May, compared to a loss of $51M, or $0.91 a share, in the year-ago period. Analysts had expected earnings per share of $0.65.
Sales rose 197.6 per cent to $597.8M compared to the year-ago period and 64 per cent compared to the first quarter of 2019. Analysts had expected sales of $555M. For the comparable subset of stores that were open in both the first quarter of fiscal 2019 and the first quarter of fiscal 2021, sales increased 23 per cent.
“With the inherent flexibility of our eight worlds, unique merchandising approach and focus on innovation, we believe we remain in a position of strength to continue growing Five Below and driving sustainable, long-term value for all stakeholders,” said Anderson.
