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Five Below Inc. (FIVE+5.42%) has submitted its Form 10-K filing for the fiscal year ended February 1, 2025.
The filing reports net sales of $3.88 billion, an increase from $3.56 billion the previous year. This growth was driven by new store openings and non-comparable sales.
Comparable sales decreased by 2.7% in fiscal 2024. This decrease was attributed to a reduction in the number of transactions during the period.
Cost of goods sold increased to $2.52 billion from $2.29 billion, primarily due to higher merchandise costs and new store openings. Gross profit rose to $1.35 billion, but gross margin decreased to 34.9% from 35.8%.
Selling, general, and administrative expenses, including depreciation and amortization, increased to $1.03 billion from $888.3 million. This increase was due to higher store-related expenses and corporate-related expenses.
Net income for the fiscal year was $253.6 million, down from $301.1 million in the previous year. The decline was due to decreased operating income and higher expenses.
The company opened 227 net new stores in fiscal 2024 and plans to open approximately 150 new stores in fiscal 2025. As of February 1, 2025, Five Below operated 1,771 stores across 44 states.
Five Below's business model focuses on offering trend-right merchandise at value price points, primarily targeting tweens and teens. The company plans continued expansion of its store base and e-commerce capabilities.
The filing also details various financial agreements, including a secured asset-based revolving line of credit of up to $225 million, which expires in September 2027.
Five Below does not anticipate paying cash dividends in the foreseeable future, as it plans to reinvest earnings into growth initiatives.
The company identified potential risks, including inflation, supply chain disruptions, and competition, which could impact future performance. However, it remains focused on executing its growth strategy and enhancing operating margins.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Five Below Inc. annual 10-K report dated March 20, 2025. To report an error, please email earnings@qz.com.