After closing stores in March due to the COVID-19 pandemic, Five Below reopened its locations in late April and consumers drove second quarter sales and earnings higher.
Net income was $29.6 million, or 53 cents per diluted share, the company stated, versus $28.8 million, or 51 cents per diluted share, in the 2019 second quarter.
Reopened period comparable sales— defined by Five Below as sales change for the days comparable stores operated in the quarter against sales for the same days in the prior-year period— increased 6% versus the period a year before, with stores increasing approximately 4% and e-commerce contributing approximately two points to the comparable sales increase. Comparable sales for the full quarter slipped 12.2% from the year-previous period, driven by a 19% decrease in comparable operating days. Net sales advanced 2.1% to $426.1 million in the quarter year over year. Operating income was $33.1 million versus $36 million in the year-past period.
A benefit from share-based accounting came in at three cents per share in the quarter versus one cent in the year-earlier period.
Joel Anderson, president and CEO, said, “I am proud of the execution of the entire Five Below team and the results we delivered against a challenging backdrop. We swiftly responded to new and changing operating conditions, safely reopening our chain while opening 63 new stores across 24 states, accelerating our digital strategy and ensuring the relevance of our merchandise assortment and marketing messages to reflect the current environment, including a focus on essential items. In addition, we simultaneously made significant strides on the foundational initiatives that underpin our growth strategy, namely in people, systems and infrastructure, to drive long-term, sustainable growth. The third quarter is off to a strong start, and we are focused on the all-important holiday season. The work we have done in preparing our stores for a safe and efficient customer experience, as well as our expanded digital capabilities, is serving us well. Our teams are quickly adapting and constantly innovating to ensure that we continue to delight customers with amazing product at incredible values, and we feel good about our positioning for the second half of the year.”