A 4.2% first quarter same store sales increase at teen retailer Five Below and better than expected results prompted the operator of 258 stores to increase its full year guidance.
Sales for the quarter ended May 4 increase 33.1% to $95.6 million and operating income swung to $3.2 million from a prior year loss of $2 million. Net income was $1.6 million compared to a net loss of $1.2 million the prior year.
The company opened 14 new stores and said it is on track to open a total of 60 units, including 15 stores in the new markets of Dallas and Austin. To support those locations and anticipated growth in other southern states the company began operations at a new distribution facility near Memphis during May.
"The first quarter played out largely as we had expected and we are pleased to have delivered results that came in ahead of our original guidance,” said Thomas Vellios, co-founder, president and CEO of Five Below. “As we said a few weeks ago, once the headwinds facing consumers abated mid-quarter, we saw a strengthening in our traffic and sales patterns as our trend-right merchandise at extremely compelling prices resonated with our customers."
The company expects continued improvement in the second quarter with a comp increase between 4% and 5% sales totaling between $112 million to $114 million. Full year sales are forecast to total $524 million to $529 million, assuming comps increase 4% and 60 stores open as planned.