Five Below Inc ( (FIVE) ) has released its Q1 earnings. Here is a breakdown of the information Five Below Inc presented to its investors.
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Five Below, Inc. is a high-growth value retailer specializing in trend-right, high-quality products primarily for tweens and teens, with most items priced between $1 and $5, and some extreme value items priced beyond $5. The company operates in the retail sector and is known for its fun store experience and diverse product offerings across various categories.
In its first quarter of fiscal 2025, Five Below reported a significant increase in net sales by 19.5% to $970.5 million, with a comparable sales increase of 7.1%. The company also opened 55 new stores, bringing its total to 1,826 locations across 44 states. The quarter saw a rise in both GAAP and adjusted diluted earnings per share, reflecting strong operational performance.
Key financial highlights include an increase in operating income to $50.8 million from $36.2 million in the previous year, and a net income rise to $41.1 million from $31.5 million. The company also reported an adjusted net income of $47.5 million. The effective tax rate increased to 27.2% from 23.5% in the prior year. Additionally, Five Below announced a CFO transition, with Ken Bull stepping in as interim CFO.
Looking forward, Five Below has raised its full-year 2025 sales guidance and the low end of its EPS guidance range. The company plans to open approximately 150 new stores throughout the year, expecting net sales between $4.33 billion and $4.42 billion, and an adjusted net income between $235 million and $261 million. The management remains focused on executing its customer-centric strategy amidst global trade uncertainties.