October 20, 2014 11:30 PM ET

Specialty Retail

Company Overview of Five Below, Inc.

Company Overview

Five Below, Inc. operates as a specialty value retailer in the United States. The company offers various products priced at $5 and below. It offers accessories, such as novelty socks, sunglasses, jewelry, scarves, gloves, hair accessories, and ‘attitude’ T-shirts, as well as beauty products, including nail polish, lip gloss, fragrance, and branded cosmetics; and items used to complete and personalize living space comprising glitter lamps, posters, frames, fleece blankets, pillows, candles, incense and related items, and storage options for the customer’s room and locker. The company also provides sport balls; team sports merchandise and fitness accessories, including hand weights, jump ropes...

1818 Market Street

Suite 2000

Philadelphia, PA 19103

United States

Founded in 2002

1,000 Employees

Phone:

215-546-7909

Fax:

215-546-8099

Key Executives for Five Below, Inc.

Co-Founder
Age: 59
Total Annual Compensation: $700.0K
Co-Founder and Executive Chairman
Age: 59
Total Annual Compensation: $600.0K
Chief Financial Officer
Age: 51
Total Annual Compensation: $336.4K
Compensation as of Fiscal Year 2013.

Five Below, Inc. Key Developments

Five Below, Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and First Half Year Ended August 2, 2014; Provides Earnings Guidance for the Third Quarter of Fiscal 2014; Revises Earnings Guidance for the Full Year of Fiscal 2014; Plans to Open New Stores

Five Below, Inc. announced unaudited consolidated earnings results for the second quarter and first half year ended August 2, 2014. Net sales increased by 30.2% to $152.5 million from $117.1 million in the second quarter of fiscal 2013; comparable store sales increased by 3.2%. Operating income increased to $13.3 million from $7.2 million in the second quarter of fiscal 2013. Adjusted operating income, which excludes the impact of the founders' transaction and the fees incurred related to the company's secondary public offering in the second quarter of fiscal 2013 increased to $13.3 million from $9.7 million in the second quarter of fiscal 2013. GAAP net income attributable to common shareholders was $8.3 million compared to $4.1 million in the second quarter of fiscal 2013. Adjusted net income was $8.3 million compared to $6.1 million for the second quarter of fiscal 2013. GAAP diluted income per common share was $0.15 compared to $0.07 per share in the second quarter of fiscal 2013. Adjusted diluted income per common share was $0.15 per share compared to $0.11 per share in the second quarter of fiscal 2013. Income before income taxes was $13.3 million against $6.5 million reported last year. Comparable store sales increased by 3.2% for the second quarter of fiscal 2014, as compared to a 6.6% comp increase in the second quarter of 2013. This comp increase was largely driven by transactions. Net sales in the first six months period increased 30.9% to $278.5 million from $212.7 million in the comparable period in fiscal 2013; comparable store sales increased by 4.6%. Operating income was $18.6 million as compared to $10.4 million in the comparable period in fiscal 2013. Adjusted operating income increased to $19.5 million as compared to $14.4 million in the comparable period in fiscal 2013. GAAP net income attributable to common shareholders was $11.4 million compared to $5.6 million in the comparable period in fiscal 2013. Adjusted net income was $11.9 million compared to $8.5 million for the comparable period in fiscal 2013. GAAP, diluted income per common share was $0.21 compared to $0.10 per share in the comparable period in fiscal 2013. Adjusted diluted income per common share was $0.22, compared to $0.16 in the comparable period in fiscal 2013. Income before income taxes was $18.3 million against $9.2 million reported last year. Net cash provided by operating activities was $12.6 million against net cash used in operating activities of $5.7 million reported last year. Capital expenditures were $19.7 million against $15.1 million reported last year. For the third quarter of fiscal 2014, net sales are expected to be in the range of $136 million to $138 million based on opening 12 new stores and assuming a flat to slightly positive comparable store sales. GAAP net income is expected to be in the range of $2.8 million to $3.3 million, with a GAAP diluted income per common share range of $0.05 to $0.06 on approximately 54.7 million estimated diluted weighted average shares outstanding. For fiscal 2014, net sales are expected to be in the range of $681 million to $687 million based on opening 62 new stores for the full year and assuming a 4% increase in comparable store sales. GAAP net income is expected to be in the range of $47.2 million to $48.8 million, with a GAAP diluted income per common share of $0.86 to $0.89 on approximately 54.7 million estimated diluted weighted average shares outstanding. Excluding $0.5 million, or $0.01 per adjusted diluted share in tax-effected expenses related to the founders' transaction, adjusted net income is expected to be in the range of $47.8 million to $49.3 million, or $0.87 to $0.90 per diluted share based on estimated adjusted diluted weighted average shares outstanding of approximately 54.7 million. The company is rising full year earnings guidance that they provided back in June by $0.01. The company continues to expect relatively flat gross and operating margins for the full year. The company plans to spend CapEx of approximately $36 million in fiscal 2014. The company expects opening 12 new stores in the third quarter of fiscal 2014 and 62 new stores in the full year.

Five Below, Inc. Signs Lease for New Distribution Center in Oldmans Township, New Jersey

Five Below, Inc. announced the company has signed a lease for a new distribution center in Oldmans Township, New Jersey. The 1,045,000 square-foot facility, located at 5 Gateway Blvd in Pedricktown, will replace the company's existing 421,000 square foot facility located 12 miles away in New Castle, Delaware. Five Below will occupy approximately 700,000 square feet of the facility to start with plans to grow to a million square feet over time. The new distribution center, which is expected to be fully operational in the second half of 2015, will support the Company's continued growth and expansion on the East Coast. Five Below will move into the new facility in Summer 2015. The property is owned by NFI. All of the 175 current jobs at the New Castle facility will be transferred to the new site, and given the proximity of the location to the existing facility, it is expected most employees will continue in their current positions with over 100 new jobs expected to be created over the next few years. The company hosted a ground-breaking ceremony at the new facility with local community and government officials.

Five Below, Inc. to Report Q2, 2015 Results on Sep 10, 2014

Five Below, Inc. announced that they will report Q2, 2015 results at 5:00 PM, Eastern Standard Time on Sep 10, 2014

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