Thu, Aug 29, 7:37 PM (138 days ago)
For the fiscal quarter ending August 3, 2024, Five Below, Inc. reported a net sales increase of 9.4% to $830.1 million compared to $759.0 million in the same period last year. However, comparable sales fell by 5.7%, driven by a decrease in transaction volume. The cost of goods sold rose 12.9%, leading to a gross profit of $271.8 million, down from $264.6 million, with gross margin declining to 32.7%. SG&A expenses increased by 11.8% to $230.3 million, reflecting investments in store growth. Consequently, net income decreased 29.5% to $33.0 million, with an effective tax rate of 25.9%. For the year-to-date period, net sales rose 10.6% to $1.64 billion, but net income dropped 23.5% to $64.5 million. The company anticipates capital expenditures of $335-$345 million for fiscal 2024, primarily for new store openings. As of August 3, 2024, Five Below had no borrowings under its $225 million revolving credit facility, indicating strong liquidity. However, uncertainties remain regarding inflationary pressures, supply chain disruptions, and competitive dynamics that could impact future performance.