Five Below, Inc. Revenue & Financials

Five Below reported net sales of $3.88 billion for fiscal 2024 ended February 1, 2025, an 8.9% increase over the $3.56 billion reported in fiscal 2023, which contained a 53rd week contributing approximately $48.1 million. Excluding the 53rd week impact, fiscal 2024 net sales increased 10.4%, a figure driven entirely by unit expansion rather than comparable-store growth, as comparable sales declined 2.7% for the full year. The company opened 227 net new stores in fiscal 2024, ending the year with 1,771 locations in 44 states, compared to 204 net new stores and 1,544 locations in fiscal 2023. Gross profit for fiscal 2024 was $1.35 billion, yielding a gross margin of 34.9%, down modestly from prior-year levels due to higher freight costs, inventory markdowns, and the mix impact of rapid new-store openings, which typically operate at lower initial margins. Adjusted gross profit, which excludes $21.2 million in non-recurring inventory write-offs, $1.0 million in retention awards, and $3.9 million in cost-optimization initiatives, was $1.38 billion, representing an adjusted gross margin of approximately 35.6%. Operating income declined from $385.6 million in fiscal 2023 to $323.8 million in fiscal 2024, an operating margin compression from 10.8% to 8.4%. Adjusted operating income of $356.1 million, which excludes litigation, retention awards, stock compensation benefits, inventory write-offs, cost-optimization initiatives, and asset disposal impacts, still represented a 4.8% decline when excluding the 53rd week effect. Net income for fiscal 2024 was $253.6 million, down from $301.1 million in fiscal 2023, with diluted earnings per share falling from $5.41 to $4.60. Adjusted diluted EPS was $5.04, down 4.2% excluding the 53rd week. The balance sheet remained fortress-like. Total assets grew to $4.34 billion from $3.87 billion, driven by inventory investment, new store capital expenditures, and lease assets. Total shareholders' equity increased to $1.81 billion from $1.58 billion, reflecting retained earnings accumulation. The company repurchased approximately 267,000 shares at a cost of $40.0 million during fiscal 2024, though the buyback program was modest relative to cash generation. Cash provided by operating activities was $430.6 million, down from $499.6 million in fiscal 2023, primarily due to inventory build and changes in working capital. Capital expenditures were significant as the company invested in new stores, distribution center automation, and technology infrastructure. Gross capital expenditures for fiscal 2025 are guided at approximately $210 million to $230 million, a slight increase from fiscal 2024 levels, reflecting continued expansion. The third quarter of fiscal 2025, ended November 1, 2025, signaled a dramatic inflection. Net sales surged 23.1% to $1.04 billion, comparable sales increased 14.3%, and adjusted operating income rose to $45.1 million from $27.6 million in the prior-year quarter. Gross margin expanded approximately 320 to 330 basis points year-over-year to 33.8% to 33.9%, driven by better fixed-cost leverage, improved inventory productivity, and the benefits of the merchandising reset. Year-to-date fiscal 2025 net sales reached $3.04 billion, up 22.1%, with adjusted operating income of $159.8 million compared to $102.8 million in the prior-year period. The company raised full-year fiscal 2025 guidance to net sales of approximately $4.62 billion to $4.65 billion, with adjusted diluted EPS expected between $4.10 and $4.72, a significant upward revision from prior guidance.