Five Below (FIVE) Q4 2019 earnings summary

Executive summary

• FY2018 net sales rose 22.0% to $1.56B; net income increased 46.1% to $149.6M, with 125 net new stores and 3.9% comparable-sales growth.

• The store base reached 750 across 33 states; plans called for 145–150 openings in FY2019 and long-term expansion to more than 2,500 locations.

Financial highlights

• FY2018 net sales were $1,559.6M, up $281.4M or 22.0%; comparable sales increased 3.9% on a restated-calendar basis.

• Gross profit increased 21.9% to $565.1M; operating income rose to $187.2M from $157.4M, and net income reached $149.6M from $102.5M.

• Q4 FY2018 net sales were $602.7M, gross profit $312.8M, net income $102.1M and diluted EPS $1.59.

Outlook and guidance

• FY2019 plans called for 145–150 new stores; 89 leases had been executed by February 2, 2019.

• FY2019 capital expenditures were projected at approximately $170M, including approximately $50M for new stores; funding expected from operating cash flow.

• Long-term U.S. store potential was estimated at more than 2,500 locations; growth depends on sites, staffing, distribution capacity and customer demand.