PHILADELPHIA, PA — Five Below, Inc. (NASDAQ: FIVE), the trend-right, value-driven retailer, recently announced its third-quarter fiscal results for 2023 and offered an optimistic outlook for the remainder of the fiscal year.
The third quarter, ending on October 28, 2023, saw net sales increase by 14.2% to $736.4 million from $645.0 million in the same quarter of fiscal 2022. This period also witnessed a comparable sales increase of 2.5%. The company expanded its footprint by opening 74 new stores, bringing the total to 1,481 stores across 43 states, a 14.6% increase from the end of the third quarter of fiscal 2022.
However, operating income was slightly lower at $16.1 million compared to $20.9 million in the third quarter of fiscal 2022. Net income also decreased to $14.6 million from $16.1 million in the same period last year. Diluted income per common share saw a slight dip to $0.26 from $0.29 in the third quarter of fiscal 2022.
For the year-to-date period ending October 28, 2023, net sales increased by 13.7% to $2.22 billion from $1.95 billion in the corresponding period of fiscal 2022. The company opened 141 new stores, significantly more than the 102 new stores opened in the same period in the previous fiscal year. Despite this expansion, operating income saw a minor decrease to $117.1 million from $119.3 million in the year-to-date period of fiscal 2022. However, net income rose to $98.9 million from $90.2 million in the same period of fiscal 2022, and diluted income per common share increased to $1.78 from $1.62.
Looking ahead, Five Below expects net sales for the fourth quarter of fiscal 2023 to be in the range of $1.32 billion to $1.35 billion, assuming an approximate 2% to 3% increase in comparable sales and the opening of over 60 new stores. Net income is forecasted to be between $201 million and $211 million.
For the full fiscal year 2023, the company expects net sales to be between $3.54 billion to $3.57 billion, with an approximate 2.5% increase in comparable sales and the opening of over 200 new stores. Net income is projected to be in the range of $300 million to $310 million.
In addition to these projections, the company’s Board of Directors has approved a new share repurchase program authorizing the repurchase of up to $100 million of the Company’s common shares through November 27, 2026. This move demonstrates Five Below’s confidence in its financial health and commitment to enhancing shareholder value.
These results and predictions highlight Five Below’s resilience and adaptability amidst a challenging retail landscape. The company has demonstrated that it remains committed to its aggressive growth strategy while continuing to provide value to its customers and shareholders.
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