Five Below, Inc. · NASDAQ:FIVE
Five Below — Investor Presentation (January 2023)
42 slides from Five Below's investor presentation, January 2023
Slide 1: Investor Presentation - Jan 2023
investor presentation - jan 2023
Slide 2: Forward Looking Statements
forward looking statements Forward-Looking Statements: This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, wh
Slide 3: Our story... read on!
our story... read on! about five bElOW our differentiated experience our powerful store model the numbers our vision for growth 3
Slide 4: About Five Below
a bo ut five be lo w . ch ec k i t out ! 4
Slide 5: Five Below is a unique investment opportunity
fiVµ bELOW is a unique investment opportunity leading high growth value retailer long runway for unit growth compelling new store model consistent performance benefits from scale 5
Slide 6: Five Below through the years
fiVµ bELOW through the years 2002 • fi rst store opens 2016 •a nnual sales reach $1 Billion! in Wayne, PA •E -Commerce website goes live •5 00th store opens!! 2003 • Iconic $5 Spalding basketball 2017 starts selling • new store experience launches! •F ive Below enters California •1 00th store opens 2
Slide 7: Five Below competitive differentiators
fiVµ competitive differentiators tween & teen handpicked, focus trend-right, wow products disciplined extreme high growth value fun, one-of-a-kind shopping experience led by a highly experienced management team 7
Slide 8: Tween & teen-focused with broad customer appeal
tween & teen-focused with broad customer appeal target customers Gen Z Millennial / Gen X 8–14 yr olds 24–44 yr olds Girls & Boys Parents 8
Slide 9: Broad appeal across incomes with high dwell time
broad appeal across incomes with high dwell time average HHI: ~$73,000 $75,000 - $99,999 15% $50,000 - $74,999 $0 - $49,999 34% 19% 4% 28% 5% < :10 mins N/A :10-:15 46% > :20 mins 19% $100,000+ mins :16-:20 high average dwell time: mins 20 minutes source: december 2021 third party consumer study 30%
Slide 10: Tech. style. candy.
trend-right “wow” products at great value across 8 awesome worlds party. tech. play. create. style. new & now. 10 candy. room.
Slide 11: FY 2021: 1,190 stores in 40 states
FY 2021: 1,190 stores in 40 states! 1st state in 2002 (1) new state net new year end entry stores count 2002-2011 +192 192 2012 +52 244 2013 +60 304 2014 +62 366 2015 +71 437 2016 +85 522 2017 +103 625 2018 +125 750 2019 +150 900 2020 +120 1,020 open distribution centers in Pedricktown, NJ, Forsyth,
Slide 12: Growth led by experienced leadership
growth led by experienced leadership executive role year joined experience tom vellios Chairman & Co-Founder Co-founded 2002 Zany Brainy, Caldor/May Company joel anderson President & Chief Executive Officer 2014 Walmart, Lenox, Toys ‘R Us ken bull Chief Financial Officer & Treasurer 2005 Urban Outfi
Slide 13: Our differentiated experience
our entiated diffe r e. er ienc exp amaz i n g ! 13
Slide 14: The purpose-driven value retailer for tweens & teens and beyond
THE purpose-driven value retailer FOR TWEENS & TEENS AND BEYOND knows life is way better when you’re free to in an filled with priced so low, you can always say to the 14
Slide 15: Five Below DNA: our deeply held values and beliefs
fiVµ BELOW dna: our deeply held Values and Beliefs the way valu v es & be havi ors. unleash your wow our passion. custom ers. five below is like a team of unstoppable superheroes is everything. every the customer . everyone’s unique backgro decision we make begins and and experiences blend togeund s
Slide 16: For more information please click here
For more information please click here. 16
Slide 17: We deliver our purpose with people!
we deliver our purpose with people! hi! welcome to five below! in our stores in our DCs in our offices 17
Slide 18: Unlimited possibilities driven by the newest, coolest stuff
unlimited possiblities driven by the newest, coolest stuff “craze” trends licensed trends & brands on-trend stuff (relevancy) 18
Slide 19: An amazing, fun experience
an amazing, no one else does what we do in a fun experience 9,000 sq. ft. store! unique and engaging in-store experience fun and dynamic with friendly “wow crew” and upbeat music easy-to-navigate with vibrant signs and low sightlines across the store iconic fixtures that encourage interaction with p
Slide 20: Staying relevant with innovation
staying relevant with innovation Fast + Easy new ear piercing + associate assisted balloon launches! self checkout extreme value 20
Slide 21: Our customers love us and say yes! Follow us!
our customers us and say yes! “I got the cupcake one I love it :)” “I checked 5B again on “Trying mega slime lickers for Anitreia my lunch break and was the first time. I am deceased. able to grab Floxie for itskristiii “Those are way better than @landoftenthousandsquish! the cheap crap from dollar
Slide 22: Our powerful store model
ou r ul po w er f s to r e mo d e l . WHEREON TH E A C T I IS! 22
Slide 23: Located in high traffic centers
located in high traffic centers Five Below visit was planned as the first stop in the shopping center* 55% 45% Five Below visit came after another stop in the center* • currently lease all store locations. • average 9,000 sq. ft. per store. • majority 10-year initial terms with options to extend. *s
Slide 24: Proven success across diverse markets
proven success across diverse markets urban a suburban a semirural a • 5th Ave •Pasadena, TX • Lake City, FL (New York City DMA*) (Houston DMA*) (Jacksonville DMA*) • Washington D.C. • Redlands, CA • London, KY • New York, NY • Roseville, MI • Tupelo, MS • Chicago, IL • Greensboro, NC • San Angelo,
Slide 25: New store model & performance
new store model & performance 2012 2016-2018 actual 2022 (@ipo model) pre-pandemic (avg) (beyond model) sales (avg. unit volume) $2.1m $2.2m 4-wall $1.6m ebitda margin $525K $550K $340K 25% 25% 21.8% investment $300K $320K ~$400K industry-leading! payback <1Year <1Year <1Year 25
Slide 26: Consistent store performance across fleet in FY 2021
consistent store performance across fLeet in FY 2021 3,172 by region (1) 2,709 2,617 2,696 2,563 2,520 2,410 2,511 2,350 2,456 2,489 2,429 2,283 New England Upstate NY Metro Philly Metro Balt/DC Rust Belt Midwest Eastern Southeast Florida Texas California Grand Total (39) NY/PA (65) (65) (57) (115)
Slide 27: The numbers
th e s. n um ber we ’ r e a l l about r e s u lt s ! 27
Slide 28: Disciplined and profitable growth
disciplined and profitable growth 2016 2017 2018 2019 2020 2021 5YR $2,848 CAGR(1) net $1,847 $1,962 $1,560 sales $1,000 $1,278 23% $379.9 operating $217.3 income $187.2 $154.8 27% $157.4 $114.0 $278.9 net $149.6 $175.1 income 31% $123.4 $71.8 $102.5 $3.12 $4.95 diluted $2.66 $2.20 eps $1.84 31% $1.
Slide 29: Over a decade of positive annual comps
over a decade of positive annual comps 2016 2017 2018 2019 H2’20 H2’21 (1) +13.5% +13.4% +6.5% +3.9% +2.0% comp +0.6% avg. transaction –0.4% +5.8% +0.8% –0.5% ~-5% –0.5% avg. ticket +2.4% +0.7% +3.1% +1.1% ~+20% +20% store count (ye) 522 625 750 900 1,020 1,190 store 8 product worlds drive year coun
Slide 30: Strong business model drives self-funded growth
strong business model drives self-funded growth capex (1) includes strong cash position (2) new dc $288 $410 $28 $380 includes includes new dc new dc $337 $262 includes $212 $200 $140 new dc $26 $245 includes new $19 home office $114 $102 $94 $68 $18 $13 $32 $120 $5 $84 $86 $50 $64 2017 2018(3) 2019
Slide 31: Our vision for growth
ou r or io n vis th. f gr o w fu t u r e ’ s so br i g h t .. . 31
Slide 32: Vision for growth: triple and double
vision for growth triple u.s. store base double triple top line & bottom Line DouBle ! 32
Slide 33: Strategic growth priorities
strategic growth priorities 1 grow our store base – 2 our largest growth driver reinvest in 3 “wow” merchandise 4 increase brand awareness scale systems & 5 infrastructure build our team & culture 33
Slide 34: 1 - Grow our store base
1 - grow our store base 3,500+ plan to cove continentalr the u.s. ~160 new stores in 2022! ~1/3 way there! (1) 1,190 AGR C 21% ~ 2022 552 states 215 2012 2016 2021 potential (1) at IPO YE YE • continued focus on densifying existing markets • largest states planned to be CA, TX, FL, NY and PA (1) man
Slide 35: 2 - Reinvest in "wow" merchandise
2 - reinvest in “wow” merchandise trend-driven merchandising team ongoing reinvestment in products global sourcing with over 800 vendors low-cost operating philosophy balls ship deflated without packaging (we don’t ship air, so you save!) 35
Slide 36: Product trends & value!
2 - “wow” merchandise investing in trends & extreme value Product trends & value! “S” trends! new & now seasonal it’s new, beyond $5 and still waaay BELOW the rest! squishmallows™ fun for just a buck pop-up wireless pet playpen sensory toys slime licker speaker table 6ft anime Basketball trend hoop
Slide 37: 3 - Increase brand awareness
3 - increase brand awareness Mobile DIGITAL TV/Streaming Social e-commerce Advertising Integration Collaborations 37
Slide 38: Stores open <5 years: big opportunity in newer markets
3 - increase brand awareness stores open <5 years are big under 50% opportunity in awareness* newer markets! 65% 62% 52% 49% 40% open open open open open <2 2-3 4-5 6-7 8+ years years years years years 67 stores 120 stores 194 stores 213 stores 608 stores *aided brand awareness. source: december 202
Slide 39: 4 - Scale systems & infrastructure
4 - scale systems & infrastructure FIVE NODE DISTRIBUTION NETWORK Indianapolis, In 2022 pedricktown, nj 2015 Buckeye, AZ Forsyth, GA 2021 2019 conroe, tx 2020 39
Slide 40: 5 - Build our team & culture
5 - build our team & culture create an awesome experience to deliver long-term growth! culture. talent. scale. • bring our purpose • attain and retain • evolve oranizational “let go & have fun” to life top-tier leaders structure to drive throughout the company continued growth • foster best-in-class
Slide 41: Five Below is a unique investment opportunity
fiVµ bELOW is a unique investment opportunity leading high growth value retailer long runway for unit growth compelling new store model consistent performance benefits from scale 41
Slide 42: fivebelow.com
42 fivebelow.com