Discount retailer Five Below delivered strong Q4 earnings, with net sales climbing 4% to $1.39 billion despite a 3% decline in comparable sales.
However, net income dropped to $187.5 million, down from $202.2 million the previous year.
For the full fiscal year, the company saw its net sales rise by 8.9% to $3.88 billion, while comparable sales decreased by 2.7%, and operating income totaled $253.6 million compared to $301.1 million in the year prior.
In the upcoming year, Five Below expects comparable sales to increase by 3% and expects to achieve net sales of between $4.21 billion and $4.33 billion.
Winnie Park, CEO of Five Below, said: “We are executing our key strategies around product, value, and store experience, and doing so with a sharpened focus on our core customer—the kid and the kid in all of us.
“We have a unique opportunity to deliver amazing value across a curated assortment featuring consistent newness with simplified pricing.”
The discount retail chain opened 228 stores across 39 states in 2024 and plans to open 150 stores in 2025.
As a part of its strategy, Five Below is shifting towards its original $1 to $5 price point, citing the importance of discount offerings amid increasing economic uncertainty in the US.
Park commented in an earnings call: “Our priority is to keep prices low and our offering accessible to ensure we maintain the trust and loyalty of our customers and attract new customers to the brand.
“This commitment not only sets us apart in retail but also resonates more than ever with customers looking for budget-friendly options in these uncertain times.”
Five Below also announced that it has appointed Jacob Hawkins as chief marketing officer to drive brand awareness and visibility of product offerings.
He brings extensive experience to the role, having previously served as chief marketing, digital, and omni officer at Forever 21 and worked at Belk as chief marketing and digital officer for four years.
In his new role, he will oversee digital marketing strategies for growth and customer engagement.
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