The company has reported an impressive first quarter that exceeded top-and bottom-line estimates as it continued its aggressive expansion.
The value retailer for tweens and teens opened 49 net new stores across 25 states during the quarter, for a total of 1,970 stores in 46 states. It expects to open approximately 50 new stores in the second quarter, with a total of 150 new stores planned for the full year.
On the earnings call, CEO Winnie Park said the company is now testing layouts and designs within the store “to further strengthen the shopping experience while improving sales”.
Park also told analysts that Five Below has done away with its dedicated “Five Beyond” section, which featured items above the chain’s signature $5 price point.
“We moved that product in line and we’ve actually seen that product perform better because it’s basically merchandised the way the customer wants to shop the product,” she said, adding that the majority – 80 per cent – of Five Below’s assortment is still $5 and below.
