A severe winter may have affected sales results for many retailers, but Five Below saw improving trends as it weathered the fourth quarter.
Net sales increased by 22% to $212 million from $173.6 million in the prior-year quarter, which consisted of 14 weeks. Comparable-store sales increased by 0.3% on a 13-week basis.
The company ended the quarter with 304 stores in 19 states, an increase of 25% from the end of the prior-year quarter.
“Our first quarter of fiscal 2014 is underway and our stores are set for spring. We believe we are well positioned to continue to deliver excitement to our customers with the high quality, trend-right product and the exceptional values they expect from us," said co-founder and CEO Thomas Vellios. "We expect 2014 to be an exciting year for Five Below. Our new stores continue to generate strong performance and returns on investment. We have 62 openings planned this year across new markets like Houston and the state of Tennessee, as well as existing markets that allow for densification opportunities. We are focused on building a solid infrastructure with our investments in people, technology and distribution. This will position our company to execute at the highest levels while solidifying our foundation for the substantial growth that lies ahead. As importantly, it will ensure that we continue to fulfill our promise to our customers as we scale the business."
Looking ahead, the company expects net sales for the first quarter to be in the range of $120 million to $122 million based on opening 14 new stores and assuming a 3% to 4% increase in comparable store sales.