Q4 2024 Five Below Inc Earnings Call Transcript
Key Points
- Five Below Inc (FIVE) reported a 7.8% increase in total sales for the fourth quarter of 2024, reaching $1.39 billion.
- The company opened a record 228 new stores in 2024, expanding its presence to 1,771 stores across 39 states.
- Five Below Inc (FIVE) successfully improved operational execution in the second half of the year, leading to better staffing, optimized labor, and higher customer engagement.
- The company is focusing on delivering trend-right products at great value, which resonates with customers seeking budget-friendly options.
- Five Below Inc (FIVE) ended the year with a strong cash position of approximately $529 million and no debt.
- Comparable sales decreased by 3.0% in the fourth quarter, driven by a decrease in comp transactions and average ticket.
- The company faced a 170 basis point decline in adjusted operating margin to 18.2% for the fourth quarter.
- Five Below Inc (FIVE) is dealing with the impact of tariffs, which are expected to result in a margin headwind despite mitigation efforts.
- Adjusted SG&A expenses increased by 110 basis points in the fourth quarter, driven by higher store wages and investment in store hours.
- The company acknowledged leaving sales on the table due to adjustments in orders and chasing product as sales improved in the third quarter.
Good day and welcome to the Five Below fourth-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. Christiane Pelz, Vice President of Investor Relations and Treasury. Please go ahead, ma'am.
Thank you, Chuck. Good afternoon, everyone, and thanks for joining us today for Five Below's fourth-quarter 2024 financial results conference call. On today's call are Winnie Park, CEO; and Ken Bull, Chief Operating Officer; as well as Kristy Chipman, Chief Financial Officer and Treasurer. After management has made their formal remarks, we will open the call to questions.
I need to 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
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