Five Below, Inc. reported a net sales increase of 8.9% for fiscal year 2024, reaching $3.88 billion, up from $3.56 billion in fiscal 2023. However, the company experienced a decline in comparable sales, which fell by 2.7%, attributed to a decrease in the number of transactions. Operating income also decreased to $323.8 million from $385.6 million in the previous year, reflecting a shift in cost dynamics, with cost of goods sold rising by 10.4% to $2.52 billion. The gross margin decreased to 34.9% from 35.8%, primarily due to increased store occupancy costs.
In terms of strategic developments, Five Below expanded its store footprint significantly, increasing the number of locations from 1,544 at the end of fiscal 2023 to 1,771 by February 1, 2025. The company opened 227 net new stores during fiscal 2024 and plans to add approximately 150 more in fiscal 2025. This expansion is part of a long-term strategy to grow its store base to over 3,500 locations across the United States. The company also continues to enhance its e-commerce capabilities, offering online shopping and third-party delivery services.
Operationally, Five Below employed approximately 7,300 full-time and 15,900 part-time crew members as of February 1, 2025. The company reported a decrease in average net sales per store to $2.3 million from $2.5 million in the previous year. The company’s inventory levels increased to $659.5 million, reflecting its strategy to prepare for seasonal demand, particularly during the holiday season. The company also noted a significant investment in its distribution network, including expansions of its shipcenters in various states to support its growing store base.
Looking ahead, Five Below aims to drive comparable sales growth by refining its merchandising strategy and enhancing the in-store shopping experience. The company is focused on increasing brand awareness through cost-effective marketing efforts and expects to leverage its growing e-commerce platform to attract new customers. Despite the challenges posed by inflation and rising commodity prices, Five Below remains optimistic about its growth trajectory and operational efficiency, supported by a strong cash position and access to a $225 million revolving credit facility.
About FIVE BELOW, INC
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