Five Below Inc (NASDAQ:FIVE) reported upbeat results for its second quarter and announced plans to open 110 to 120 net new stores in the year.
The Philadelphia-based company temporarily closed all of its stores in March. These stores began to reopen in late April in compliance with federal, state and local requirements.
By the end of June, the Company had reopened substantially all of its stores to the general public. The results in the second quarter reflect the impact of store closures and re-openings.
Net sales increased by 2.1% to $426.1 million from $417.4 million in the second quarter of fiscal 2019.
Five Below re-opened period comparable sales increased approximately 6%, with stores increasing approximately 4% and e-commerce contributing approximately 2% to the comparable sales increase. Comparable sales for the full second quarter decreased by 12.2%, driven by a 19% decrease in comparable operating days.
The Company opened 62 net new stores and ended the quarter with 982 stores in 38 states.
This represents an increase in stores of 17.9% from the end of the second quarter of fiscal 2019.
Net income was $29.6 million compared to $28.8 million in the second quarter of fiscal 2019.
Diluted income per common share was $0.53 compared to $0.51 in the second quarter of fiscal 2019. The benefit from share-based accounting was approximately $0.03 in the second quarter of fiscal 2020 compared to $0.01 in the second quarter of fiscal 2019.
CEO Joel Anderson exulted, "We swiftly responded to new and changing operating conditions – safely reopening our chain while opening 63 new stores across 24 states, accelerating our digital strategy, and ensuring the relevance of our merchandise assortment and marketing messages to reflect the current environment, including a focus on essential items."
FIVE shares galloped $9.82, or 8.4%, to $126.90.
