Business
Five Below, Inc. Announces First Quarter Fiscal 2020 Financial Results
First Quarter Impacted by Temporary Store Closures Beginning March 20th Approximately 90% of Stores Reopened to Date PHILADELPHIA, PA, June 09, 2020 (GLOBE
About this update from Five Below, Inc.
[{"type":"text","content":"First Quarter Impacted by Temporary Store Closures Beginning March 20th\n Approximately 90% of Stores Reopened to Date PHILADELPHIA, PA, June 09, 2020 (GLOBE NEWSWIRE) -- Five Below, Inc. (NASDAQ: FIVE) today announced financial results for the first quarter ended May 2, 2020. For the first quarter ended May 2, 2020:Due to the COVID-19 pandemic, the Company temporarily closed all of its stores as of March 20, 2020. These stores began to reopen in late April 2020 in compliance with federal, state and local requirements. As of June 9, 2020, the Company has reopened approximately 90% of its stores. The results in the first quarter reflect the impact of the closures and reopenings. Net sales decreased by 44.9% to $200.9 million from $364.8 million in the first quarter of fiscal 2019; comparable sales decreased by 51.8%.The Company opened 20 net new stores and ended the quarter with 920 stores in 36 states. This represents an increase in stores of 16.6% from the end of the first quarter of fiscal 2019.Operating loss was $72.2 million compared to operating income of $24.5 million in the first quarter of fiscal 2019.The effective tax rate was 29.8% compared to 1.9% in the first quarter of fiscal 2019.Net loss was $50.6 million compared to net income of $25.7 million in the first quarter of fiscal 2019.Diluted loss per common share was $0.91 compared to diluted income per common share of $0.46 in the first quarter of fiscal 2019. The benefit from share-based accounting was approximately $0.02 in the first quarter of fiscal 2020 compared to $0.11 in the first quarter of fiscal 2019.The Company repurchased 137,023 shares through the middle of the first quarter at a cost of approximately $12.7 million.The Company increased its line of credit from $50 million to $225 million and had $139 million in cash, cash equivalents, and investments at the end of the first quarter. Joel Anderson, President and CEO, stated, “The challenges of the last few months were unprecedented. We temporarily closed stores on March 20th as we joined many other retailers in doing our part to help stop the spread of COVID-19. This decision had significant financial ramifications, but the health and safety of our customers and crew are our priority. During this period with stores closed, we worked very quickly yet carefully to implement safety protocols for reopening.”...