Discount retailer Five Below says it plans to open more than 200 stores in its current fiscal year, after reporting a first-quarter revenue increase of 13.5%. The majority of the openings will be in the second half of the year, reports Chain Store Age.
In addition, reports CSA, Five Below is on track to convert more than 400 stores this year to its Five Beyond format, which has an in-store area dedicated to items priced above the chain’s signature $5 threshold.
Five Below reported first-quarter net income of $37.5 million, or $0.67 a share, in the quarter ended April 29, compared with $32.7 million, or $0.59 a share, in the year-ago quarter. Analysts had expected earnings per share of $0.63.
Revenue rose 13.5% to $726.2 million, compared with $639.6 million in the prior-year quarter. Same-store sales rose 2.7%. Five Below had a 3.9% comp transaction increase, which was the highest since 2017.
“While our customers face multiple macro headwinds, we continue to be there for them, flexing our offering to bring them the Wow products they need and want,” CEO Joel Anderson stated in the earnings release. “Our broad-based sales performance and transaction trends demonstrate that we are gaining trips and customers through our amazing value, trend-right products and Five Beyond prototype.”
The company opened 27 new stores across 19 states and ended the quarter with 1,367 stores in 43 states.