As it continued to rapidly expand its store count, Five Below rang up strong sales growth during the third quarter.
In the third quarter ended November 3, net sales increased by 21.6% to $312.8 million from $257.2 million in the third quarter of fiscal 2017. Comparable sales increased by 4.8%.
Operating income increased to $15.5 million from $14.8 million in the third quarter of fiscal 2017. Net income increased by 36.8% to $13.5 million compared to $9.9 million in the third quarter of fiscal 2017. Diluted income per common share was $0.24 compared to $0.18 per share in the third quarter of fiscal 2017.
The company opened 53 new stores and ended the quarter with 745 stores in 33 states. This represents an increase in stores of 19.2% from the end of the third quarter of fiscal 2017.
Joel Anderson, president and CEO, Five Below, said, “We are very pleased to have delivered third quarter results that exceeded the high end of our guidance ranges against last year’s strong third quarter comparison. Continued robust performance from new stores, with a record 53 openings during the quarter, and above-plan comp results were driven by a positive customer response to our compelling assortment of trend-right products across our worlds. Given our performance, we are raising our guidance for the year.”
Anderson added, “With the most important weeks of the fourth quarter ahead of us, we look forward to amazing our customers and delivering the magic of the holidays with freshness and newness at outstanding value, further reinforcing Five Below’s position as a favorite destination for holiday shopping and gift giving.”