Slide 1: Five Below
Slide 2: Investor Day 2022
Li five BECW INVESTOR Day 2022
Slide 3: Christiane Pelz
Christiane Pelz Vice President Investor Relations & Treasury 5b since 2016
Slide 4: Agenda
agenda Q4 & FY 2021 Earnings welcome Q1 & FY 2022 Growth Vision Guidance Q&A Lunch / Store Tour
Slide 5: Forward-Looking Statement
Forward-Looking Statement 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, which reflect management's curr
Slide 6: Joel Anderson
Joel Anderson President & Chief Executive officer 5B since 2014
Slide 7: 20 Years Ago & Now
20 YEARS AGO FIRST STORE IN PHILLY METRO e n & N o w T h • Unique Concept • Incredible Value • Fun, Treasure-Hunt Experience • For Teens & Tweens oct 2002 • The Yes! Store
Slide 8: 10 Years Ago
10 YEARS AGO CELEBRATED IPO 2 01 1 2 02 1 $297M Sales ~10X $26M op Income ~15X 9% op Margin ~+400bps 192 Stores ~6X JuLY 2012
Slide 9: Agenda
agenda Q4 & FY 2021 Earnings welcome Q1 & FY 2022 Growth Vision Guidance Q&A Lunch / Store Tour
Slide 10: Ken Bull
Ken Bull Chief Financial officer 5B since 2005
Slide 11: Driving FY'21
Driving FY’21 Record Performance opened “S” Trends Product, 171 New Stores Squish, Sensory, Experience & Slime licker 1,190 at FYE Supply Chain Five Beyond, Assisted Checkout, Arizona DC
Slide 12: Q4'21 Results
Q4’21 Results vs. LY Sales op Margin $996.3M 18.8% Eps +16.1% Gross SG&A $2.49 Margin +13.2% Comp 39.8% 21.0% +3.4% +10bps +100bps
Slide 13: Record Sales & Profitability in FY'21
Record Sales & Profitability in FY’21 vs. 2019 op Margin Sales 13.3% Eps $2.85b +160bps $4.95 +24.2% 2YR CAGR Gross Margin SG&A +26.0% 2YR CAGR (2019-2021) 36.2% 22.8% -30bps -190bps (2019-2021)
Slide 14: FY'21 Results
fy’21 Results Cash Total Stores 1,190 Inventory $380m +6% 15% CAGR per store vs. 2019 capex (2019-2021) $288m
Slide 15: Agenda
agenda Q4 & FY 2021 Earnings welcome Q1 & FY 2022 Growth Vision Guidance Q&A Lunch / Store Tour
Slide 16: 20/20 Vision
20/20 ViSION SaLeS GROWTH \ LEVERAGE! | J NET iNCOMe GROWTH __ y af
Slide 17: Disciplined & Profitable Growth
Disciplined & Profitable Growth 6YR 2015 2016 2017 2018 2019 2020 2021 CAGR $2,848 $1,962 Net $1,560 $1,847 23% Sales $1,000 $1,278 $832 stores 437 522 625 750 900 1,020 1,190 18% $278.8 net $175.1 30% $149.6 $154.8 Income $102.5 $57.7 $71.8 ~5X eps $1.05 $1.30 $1.84 $2.66 $3.12 $2.20 $4.95 growth!
Slide 18: Leadership Average 30+ Years in Retail
Joel Anderson Ken Bull George Hill President & CEo Chief Financial officer Chief Retail officer 5B SINCE 2014 5B SINCE 2005 5B SINCE 2017 Eric Specter Michael Romanko Judy Werthauser Chief Administrative Chief Merchandising Chief Experience officer officer officer 5B SINCE 2014 5B SINCE 2015 5B SINC
Slide 19: Leadership Average 25+ Years in Retail
Aaron Bookman Idalia Farrajota Juan Galarraga Andy Kunselman Ron Masciantonio SVP SVP SVP SVP SVP Finance Merchandising Retail operations Global Sourcing & General Counsel & 5B SINCE 2012 5B SINCE 2019 5B SINCE 2020 Product Development New Business Development 5B SINCE 2022 5B SINCE 2018 Tod Morehea
Slide 20: Five Below knows life is waaay better
knows life is waaay better when you’re free to Environment: • Sold +5M Low-Cost, Reusable Bags in 2021 • LED Lighting in ~100% of Chain in an Social: filled with • Highly Engaged Crew • Strong Community Giving priced so low Governance: you can always say • 10 Highly Experienced Board Members - 30% F
Slide 21: Vision for Growth
vision for Growth from 1,200 to 3,500+ by 2030 triple u.s. store base sales = double eps = double+ double by 2025 top line & bottom line
Slide 22: Innovation: Product, Supply Chain, Experience, Growth
Innovation Product Supply Chain Experience Growth
Slide 23: Prototype
| PROTOTYPE
Slide 24: Vintage
Evolving our Prototype Vintage • Introduced • ~7,000 Sq Ft 2008 • ~30% of Chain • “Racetrack” EoY’21 Layout
Slide 25: Fresh
Evolving our Prototype fresh • introduced 2017 • ~8,500 Sq Ft • “Runway” Layout • ~40% of Chain EoY’21 • “Let Go & Have Fun” Environment
Slide 26: Beyond
Evolving our Prototype Beyond • introduced 2020 • “Easy-In, Sticky-out” Layout • Expanded Customer Value - $5+ • Reimagined Checkout Experience • ~9,000 Sq Ft • ~30% of Chain EoY’21
Slide 27: Product
Slide 28: Michael Romanko
Michael Romanko Chief Merchandising officer 5B since 2015
Slide 29: Our 8 Worlds Enable Relevancy, Drive Growth
our 8 Worlds Enable Relevancy DRIVE Growth
Slide 30: Celebrating Rituals of Life & Milestones of Growing Up
Celebrating Rituals of Life & Milestones of Growing Up EAR PIERCING BALLOONS ROOM FIRST CAR PET •Milestone •Make Celebrations •Create Your •Personalize Your •Accessories for Moment at an Fun & Convenient Space/Makeover Car Pets of All Sizes Incredible Value •250 Store Pilot •Seasonal Updates •Steeri
Slide 31: Reducing Waste in Packaging
Reducing Waste in Packaging TECH CABLE PACKAGING • 400K LBS. OF PAPER & PLASTIC SAVED/YEAR • 30% OCEAN CONTAINER REDUCTION/ YEAR • PAPER POUCH 100% CURBSIDE RECYCLABLE • $1M+/YEAR SAVINGS IN FREIGHT & PACKAGING
Slide 32: Growing Five Beyond
Growing Five Beyond Wireless speaker table Drives Expansion of 6ft basketball Extreme Value hoop • RemodeL Lift – Mid-Single Digits robotic vacuum • ~2X Basket Size Items on a Shelf • 50% Higher Units Per Transaction Store within a Store
Slide 33: Disruptive Product + Distorted Value
Disruptive Product + Distorted Value “craze” licensed trends Relevancy trends & brands (on-trend stuff)
Slide 34: Supply Chain
Slide 35: Eric Specter
Eric Specter Chief Administrative officer 5B since 2014
Slide 36: Growth Mode Activated
Growth Mode Activated Indianapolis, In* 2022 • 5-Node DC Network • Service ~100% DMAs within 1-2 Days Pedricktown, NJ* 2015 • E-Commerce Fulfillment in 3 Nodes Forsyth, Ga 2019 • Drives Leverage & Control Buckeye, AZ* 2021 Conroe, TX 2020 *supports e-Commerce
Slide 37: Leveraging Scale
Leveraging Scale • 2,000+ Store Capacity • Shared Inventory Model for Retail + e-Commerce • Greater Efficiency, Speed & Accuracy • Strong Vendor Relationships • Multi-Year ocean Container Contracts
Slide 38: Controlling our Destiny
Controlling our Destiny • 5B-owned DC Network • Direct Imports Increasing to ~50% • Sourcing Diversification • Bi-Coastal Consolidation Points for Domestic Vendors • Piloting 5B-owned Truck Fleet
Slide 39: Experience
Slide 40: Judy Werthauser and Felipe Zardo
Judy Werthauser Chief Experience officer 5B since 2019 Felipe Zardo SVP, Digital 5B since 2020
Slide 41: Customer, Crew, Community
| CUSTOMER | CREW | COMMUNITY
Slide 42: Connecting with our Customer
Connecting with our Customer Anonymous & Individual Customer-Level Transactional Data • Investments in Data & Analytics Unlock Deeper & Richer Insights ‣ Customer lifetime value ‣ Category & product affinities ‣ omnichannel behavior ‣ Marketing effectiveness • Launch Loyalty Program by 2025!
Slide 43: Creating Experiences that WoW: Assisted Self Checkout
Creating Experiences that WoW Greater Convenience via Assisted self Checkout • Eliminates lines • Mitigates wage rate growth • Frees up the crew to drive sales • Chainwide by 2025
Slide 44: Creating Experiences that WoW
Creating Experiences that WoW • Leverage Digital to Unlock Greater Reach, Access & Convenience • omni Customers: • Have Higher Affinity • Lower Churn • Spend More ‣ Same-Day Delivery – 2021 ‣ Ship from Store - 2022 ‣ BoPIS Rollout – 2022
Slide 45: Engaging our Crew
Engaging our Crew • 20,000+ Crew Members • Creating an Inclusive & Engaging Culture • Unique Purpose & Values • Top Quartile in overall Satisfaction (Gallup) unleash hold the work hard, wow our your achieve the have fun, penny impossible. customers. passion. hostage. build a caree r.
Slide 46: Living our Purpose
Living our Purpose knows life is waaay better when you’re free to in an filled with priced so low to you can always say the
Slide 47: Living our Purpose
Living our Purpose knows life is waaay better when you’re free to in an filled with priced so low to you can always say the
Slide 48: Making an Impact in our Communities
Making an Impact in our Communities •$10m Goal in 2022 •On our way to raising $40m since 2012
Slide 49: Growth
Slide 50: George Hill
George Hill Chief Retail officer 5B since 2017
Slide 51: Vision for Growth
vision for Growth from 1,200 10x More to 3,500+ Stores by 2030 Than 2015! triple our u.s. store base sales = double eps = double+ double by 2025 top line & bottom line
Slide 52: Anywhere!
Anywhere! Urban 5th Ave, NYC Semi-Rural Flowood, MS • Geographical Relevance & Expansion • Urban Growth opportunities Suburban Dolphin Mall, FL ShipCenter Buckeye, AZ • Densification • Semi-Rural Surprises • Combining Physical + Digital
Slide 53: Densification in our Hometown of Philly
Densification In our Hometown of Philly 2002 • First store in Wayne, PA 2002
Slide 54: Densification in our Hometown of Philly
Densification In our Hometown of Philly 2002 • First store in Wayne, PA 2012 • 30 stores in Philly DMA 2012
Slide 55: Densification in our Hometown of Philly
Densification In our Hometown of Philly 2002 • First store in Wayne, PA 2012 • 30 stores in Philly DMA 2022 • +60 stores in Philly DMA 2022
Slide 56: Densification in our Hometown of Philly
Densification In our Hometown of Philly 2002 • First store in Wayne, PA 2012 • 30 stores in Philly DMA 2022 • +60 stores in Philly DMA Beyond • Ability to double! over 120 store potential The future
Slide 57: Anywhere! Accelerating New Store Growth
Anywhere! Accelerating New Store Growth 375 – 400 Total New Stores over the Next 2 Years + 550 – 600 Total New Stores in 2024 & 2025 = ~1,000 Total New Stores by End of 2025 In 48 states!
Slide 58: Five Beyond Everywhere!
Five Beyond Everywhere! ✓ Deliver 3-5% Annual Comp 2023+ ✓ 80% of chain in Beyond Format by 2025 ✓ open ~1,000 New Stores ✓ Convert ~750 Stores
Slide 59: Vision for Growth
vision for Growth from 1,200 10x More to 3,500+ Stores by 2030 Than 2015! triple our u.s. store base sales = double eps = double+ double by 2025 top line & bottom line
Slide 60: Innovation: Product, Supply Chain, Experience, Growth
Innovation Never Standing Still Product Celebrate Rituals of Life & Milestones of Growing Up Supply Chain Control our own Destiny Experience Commitment to Connecting Growth Accelerate – Stronger Than Ever!
Slide 61: Agenda
agenda Q4 & FY 2021 Earnings welcome Q1 & FY 2022 Growth Vision Guidance Q&A Lunch / Store Tour
Slide 62: Vision for Growth
vision for Growth from 1,200 to 3,500+ by 2030 triple saleS = double eps = double+ our u.s. store base by 2025 double our top line 2023-2025 17% Store CAGR + $5.6B in Sales 3-5% Comp our bottom line ~14% Operating $10 EPS Margin
Slide 63: Sales Growth
sales Growth ~17% 3-5% ~20% Unit Growth + Annual = caGR +75% Driven by CAGR Comp Sales (2023-2025) New Stores (2023-2025) Growth Drivers: Five Beyond e-Commerce Lift from New Customers, Brand Awareness & Pricing Remodels Customer Data
Slide 64: New Store Model & Performance
New Store Model & Performance 2012 2016-2018 Actual 2022 (@IPo Model) Pre-Pandemic (Avg) (Beyond Model) SALES (AVG. UNIT ~ $2.2m VoLUME) $2.1m 4-WALL $1.6m EBITDA MARGIN $525K ~ $550K $340K 25% ~ 25% 21.8% INVESTMENT $300K $320K ~$400K Industry-Leading! PAYBACK <1Year <1Year <1Year
Slide 65: Agenda
agenda Q4 & FY 2021 Earnings welcome Q1 & FY 2022 Growth Vision Guidance Q&A Lunch / Store Tour
Slide 66: Q1'22 Guidance
Q1’22 Guidance Sales • Most Difficult $644m - $658m stores Quarter in 2022 • Lapping Stimulus Comp ~35 New Payments from LY Flat to -2% • Key Easter Selling Weeks Ahead operating Margin -400bps EPS vs. LY Gross Margin SG&A $0.54 - $0.62 Fixed Cost Fixed Cost Deleverage Deleverage
Slide 67: FY'22 Guidance
fy’22 Guidance Sales stores $3.16B - $3.26B ~160 New • Unique Year +10.9 – 14.4% vs. LY ~1,350 Total • Lapping Stimulus +13.4% vs. LY • Pandemic-Impacted Comp Flat to 3% Environment ~65% open in H2 • Stores H2 Weighted & Pushed operating Margin into 2023 12.7% mp EPS • Fuel Inflation -60bps vs. LY G
Slide 68: Innovation: Product, Supply Chain, Experience, Growth
Innovation Never Standing Still Product Celebrate Rituals of Life & Milestones of Growing Up Supply Chain Control our own Destiny Experience Commitment to Connecting Growth Accelerate – Stronger Than Ever!
Slide 69: Five Below