Five Below, Inc. is a value retailer offering trendy, high-quality products predominantly priced between $1 and $5, with some items priced above $5. The company targets tweens, teens, and families, focusing on a fun shopping experience. For its fourth quarter of fiscal 2024, which ended February 1, 2025, Five Below reported total sales of $1.39 billion, a 7.8% increase from $1.29 billion in the same period last year, while comparable sales decreased by 3.0%. This decline in comparable sales was attributed to a reduction in store traffic and transaction volume.

Throughout fiscal 2024, Five Below opened 228 new stores, bringing the total store count to 1,771 by the end of the quarter. The company experienced a total sales increase of 10.4% for the full year, reaching approximately $3.88 billion, contrasting with the prior year’s $3.56 billion. However, the overall comparable sales for the entire fiscal year fell by 2.7%.

In terms of profitability, Five Below’s adjusted net income for the fourth quarter was $192.4 million, compared to $193.8 million in the previous year. Adjusted earnings per diluted share for the fourth quarter were $3.48, a slight decrease from $3.50 a year ago. For fiscal 2024, adjusted diluted earnings per share were $5.04, down from $5.26 in fiscal 2023.

The company’s adjusted gross profit for the fourth quarter was $563.2 million, a 6.2% increase year-over-year, but the adjusted gross margin decreased by approximately 60 basis points to 40.5%. For the full year, the adjusted gross margin slightly declined to 35.6%. Selling, general, and administrative (SG&A) expenses represented 22.3% of sales in the fourth quarter, up 110 basis points from the previous year. Likewise, the adjusted operating margin fell by 170 basis points to 18.2% for the quarter.

Looking ahead, Five Below provided guidance for fiscal 2025, expecting net sales between $4.21 billion and $4.33 billion, a projected increase of approximately 10.1% at the midpoint. The company anticipates comparable sales growth between flat and 3% for the full year. The adjusted operating margin is expected to be around 7.3%, reflecting a decline of about 180 basis points due to anticipated tariff impacts and increased labor investments.

For the first quarter of fiscal 2025, Five Below estimates net sales between $905 million and $925 million, representing a growth of 12.7% year-over-year. The expected adjusted diluted earnings per share for the quarter is in the range of $0.50 to $0.61. Capital expenditures for fiscal 2025 are estimated to be between $210 million and $230 million, primarily for new store openings and system investments.