Q1 2024 Five Below Inc Earnings Call Transcript
Key Points
- Five Below Inc (FIVE) delivered total sales growth of 12% for the first quarter of 2024.
- The company opened 61 new stores in the first quarter, showing strong expansion efforts.
- Gross profit increased by 12.2% to $263.5 million, driven by lower inbound freight costs.
- Positive comps were achieved in higher income cohorts, indicating some trade-down customers seeking value.
- The company has a robust pipeline for new store openings, with plans to open approximately 230 new stores this year.
- Comparable sales declined by 2.3%, driven by a decrease in comp transactions.
- The company experienced a meaningful slowdown in sales during the back half of the quarter.
- Higher shrink accruals and fixed cost deleverage negatively impacted gross margin.
- Adjusted operating income decreased to $38.2 million from $42.4 million in the first quarter of 2023.
- The lower income demographic underperformed, more than offsetting gains from higher income cohorts.
Good day and welcome to the Five Below First Quarter 2024 earnings conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Ms. Christi AutoPulse, Vice President, Investor Relations and Treasury. Please go ahead, ma'am.
Thank you. Good afternoon, everyone, and thanks for joining us today for Five Below's First Quarter 2024 financial results conference call. On today's call are Joel Anderson, President and Chief Executive Officer, and Kristy Chipman, Chief Financial Officer and Treasurer. And After management has made their formal remarks, we will open the call to questions, and I remind you that certain comments made during this call may constitute forward-looking statements and are made pursuant to and within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 as amended.
Such forward-looking statements are subject to both known and unknown risks and uncertainties that could
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