Five Below Inc (NASDAQ:FIVE) reported better-than-expected results for its fourth quarter on Wednesday.
The Philadelphia0-based Five Below said net sales increased 14.0% to $687.1 million from $602.7 million in the fourth quarter of fiscal 2018; comparable sales decreased 2.2%.
The Company opened six new stores and ended the quarter with 900 stores in 36 states. This represents an increase in stores of 20.0% from the end of the fourth quarter of fiscal 2018.
Operating income increased 23.7% to $144.1 million from $116.5 million in the fourth quarter of fiscal 2018. Net income increased 23.7% to $110.4 million from $89.3 million in the fourth quarter of fiscal 2018.
Diluted income per common share increased 23.9% to $1.97 from $1.59 in the fourth quarter of fiscal 2018. The benefit from share-based accounting was approximately $0.01 in the fourth quarter of both fiscal 2019 and fiscal 2018.
Said CEO Joel Anderson, "Fiscal 2019 marked our 14th consecutive year of positive comps. I am very pleased with our teams’ execution and accomplishments in 2019. We had a very productive year as we mitigated tariffs, opened a record number of new stores and remodels, successfully tested Ten Below concepts, hired key senior executives, upgraded IT systems, and began a multi-year build out of our distribution network.
"In addition, we made our first financial investments outside of Five Below. We continue to build on our foundation and innovate across the organization, focusing on three key strategic priorities: experience, product and supply chain."
Five Below shares plummeted $5.06, or 9.4%, at Thursday open to $48.53
