Five Below has reported fourth-quarter earnings that topped Street estimates, offered a mixed outlook going forward and said it is returning its focus to its $5-and-under price points.
On the company’s earnings call, new CEO Winnie Park said Five Below is returning to its core focus at whole $1 to $5 price points and “raising the bar on adding value to our highly edited assortment of product above $5”.
“Ultimately, this will serve to simplify the shopping experience for our customers and streamline our operations,” said Park, who took the helm of Five Below in December after serving as CEO of Forever 21 since January 2022. “Our priority is to keep prices low and our offering accessible to ensure we maintain the trust and loyalty of our customers and attract new customers to the brand.”
The move comes as the value-oriented chain, which targets tweens and teens, has been adding in-store shops featuring higher-priced items to its locations.
Five Below is continuing its expansion, with plans to open 150 new stores this year. The company opened a record 228 stores across 39 states in 2024, including entry into its 44th state, Wyoming. It ended the year with 1,771 stores across the US. Executives told analysts on the earnings call that the company still sees the opportunity for a total of 3,500 stores.
