Five Below, Inc. 非合格遞延薪酬計劃（"遞延薪酬計劃"）和相關的不可撤銷設立人信託（"信託"）爲符合條件的關鍵員工提供了選擇遞延高達 80% 的符合條件的薪酬。公司可以根據董事會的裁量進行自由捐款。遞延薪酬計劃下的付款將從公司的一般資產或由公司資助的信託資產中支付。相關負債記錄爲遞延薪酬，並納入合併資產負債表中的其他開多期負債中。
截至2024年6月29日或2023年12月31日，公司擁有外匯期貨合約、股票掉期合約或普通股投資，均屬於第三層資產。 no 截至2024年11月2日、2024年2月3日或2023年10月28日，公司資產負債表上的不確定稅務事項或相關於收入稅的利息和/或罰款的物料計提，並且在截至2024年11月2日或2023年10月28日的十三週和三十九周的合併經營報表中沒有確認任何物料不確定稅務事項或相關於收入稅的利息和/或罰款。
We also offer our merchandise on the internet, through our fivebelow.com e-commerce website, offering home delivery and the option to buy online and pick up in store. Additionally, we sell merchandise through on-demand third-party delivery services to enable our customers to shop online and receive convenient delivery. All e-commerce sales, which includes shipping and handling revenue, are included in net sales and are included in comparable sales. Our e-commerce expenses will have components classified as both cost of goods sold and selling, general and administrative expenses (including depreciation and amortization).
How We Assess the Performance of Our Business
In assessing the performance of our business, we consider a variety of performance and financial measures. These key measures include net sales, comparable sales, cost of goods sold and gross profit, selling, general and administrative expenses (including depreciation and amortization) and operating income.
Net Sales
Net sales constitute gross sales net of merchandise returns for damaged or defective goods. Net sales consist of sales from comparable stores, non-comparable stores, and e-commerce, which includes shipping and handling revenue. Revenue from the sale of gift cards is deferred and not included in net sales until the gift cards are redeemed to purchase merchandise or as breakage revenue in proportion to the pattern of redemption of the gift cards by the customer.
Our business is seasonal and as a result, our net sales fluctuate from quarter to quarter. Net sales are usually highest in the fourth fiscal quarter due to the year-end holiday season.
Comparable Sales
Comparable sales include net sales from stores that have been open for at least 15 full months from their opening date, and e-commerce sales. Comparable stores include the following:
•Stores that have been remodeled while remaining open;
•Stores that have been relocated within the same trade area, to a location that is not significantly different in size, in which the new store opens at about the same time as the old store closes; and
•Stores that have expanded, but are not significantly different in size, within their current locations.
For stores that are relocated or expanded, the following periods are excluded when calculating comparable sales:
•The period beginning when the closing store receives its last merchandise delivery from one of our shipcenters through:
▪the last day of the fiscal year in which the store was relocated or expanded (for stores that increased significantly in size); or
▪the last day of the fiscal month in which the store re-opens (for all other stores); and
20
•The period beginning on the first anniversary of the date the store received its last merchandise delivery from one of our shipcenters through the first anniversary of the date the store re-opened.
Comparable sales exclude the 53rd week of sales for 53-week fiscal years. In the 52-week fiscal year subsequent to a 53-week fiscal year, we exclude the sales in the non-comparable week from the same-store sales calculation on a restated calendar basis using the National Retail Federation's restated calendar comparing similar weeks.
Due to the 53rd week in fiscal 2023, comparable sales for the thirteen and thirty-nine weeks ended November 2, 2024 are reported on a restated calendar basis. Reference to the "restated calendar" is based on using the National Retail Federation's restated calendar comparing similar weeks, which are the thirteen weeks from August 4, 2024 to November 2, 2024 as compared to the thirteen weeks from August 6, 2023 to October 28, 2023 and the thirty-nine weeks from February 4, 2024 to August 3, 2024 as compared to the thirty-nine weeks from February 5, 2023 to October 28, 2023.
There may be variations in the way in which some of our competitors and other retailers calculate comparable or “same store” sales. As a result, data in this Quarterly Report on Form 10-Q regarding our comparable sales may not be comparable to similar data made available by other retailers. Non-comparable sales are comprised of new store sales, sales for stores not open for a full 15 months, and sales from existing store relocation and expansion projects that were temporarily closed (or not receiving deliveries) and not included in comparable sales.
Measuring the change in fiscal year-over-year comparable sales allows us to evaluate how we are performing. Various factors affect comparable sales, including:
•consumer preferences, buying trends and overall economic trends;
•our ability to identify and respond effectively to customer preferences and trends;
•our ability to provide an assortment of high-quality, trend-right and everyday product offerings that generate new and repeat visits to our stores;
•the customer experience we provide in our stores and online;
•the level of traffic near our locations in the power, community and lifestyle centers in which we operate;
•competition;
•changes in our merchandise mix;
•pricing;
•our ability to source and distribute products efficiently;
•the timing of promotional events and holidays;
•the timing of introduction of new merchandise and customer acceptance of new merchandise;
•our opening of new stores in the vicinity of existing stores;
•the number of items purchased per store visit;
•weather conditions; and
•the impacts associated with the COVID-19 pandemic, including closures of our stores, adverse impacts on our operations, and consumer sentiment regarding discretionary spending.
Opening new stores is an important part of our growth strategy. As we continue to pursue our growth strategy, we expect that a significant percentage of our net sales will continue to come from new stores not included in comparable sales. Accordingly, comparable sales are only one measure we use to assess the success of our growth strategy.
Cost of Goods Sold and Gross Profit
Gross profit is equal to our net sales less our cost of goods sold. Gross margin is gross profit as a percentage of our net sales. Cost of goods sold reflects the direct costs of purchased merchandise and inbound freight and tariffs, as well as shipping and handling costs, store occupancy, distribution and buying expenses. Shipping and handling costs include internal fulfillment and shipping costs related to our e-commerce operations. Store occupancy costs include rent, common area maintenance, utilities and property taxes for all store locations. Distribution costs include costs for receiving, processing, warehousing and shipping of merchandise from our shipcenters and between store locations. Buying costs include compensation expense and other costs for our internal buying organization, including our merchandising and product development team and our planning and allocation group. These costs are significant and can be expected to continue to increase as our Company grows.
The components of our cost of goods sold may not be comparable to the components of cost of goods sold or similar measures of our competitors and other retailers. As a result, data in this Quarterly Report on Form 10-Q regarding our gross profit and gross margin may not be comparable to similar data made available by our competitors and other retailers.
21
The variable component of our cost of goods sold is higher in higher volume quarters because the variable component of our cost of goods sold generally increases as net sales increase. We regularly analyze the components of gross profit, a non-GAAP financial measure, as well as gross margin as it provides a useful and relevant measure to analyze our financial performance. Any inability to obtain acceptable levels of initial markups, a significant increase in our use of markdowns, and a significant increase in inventory shrinkage or inability to generate sufficient sales leverage on the store occupancy, distribution and buying components of cost of goods sold could have an adverse impact on our gross profit and results of operations. In addition, global supply chain disruptions, the cost of freight and constraints on shipping capacity to transport inventory may have an adverse impact on our gross profit and results of operations, as well as our sales. Changes in the mix of our products may also impact our overall cost of goods sold.
Selling, General and Administrative Expenses (including Depreciation and Amortization)
Selling, general and administrative (including depreciation and amortization), or SG&A, expenses are composed of payroll and other compensation, marketing and advertising expense, depreciation and amortization expense and other selling and administrative expenses. SG&A expenses as a percentage of net sales are usually higher in lower sales volume quarters and lower in higher sales volume quarters.
The components of our SG&A expenses may not be comparable to those of other retailers. We expect that our SG&A expenses will increase in future periods due to our continuing store growth. In addition, any increase in future share-based grants, modifications or forfeitures will impact our share-based compensation expense included in SG&A expenses.
Operating Income
Operating income equals gross profit less SG&A expenses. Operating income excludes interest expense or income, other expense or income, and income tax expense or benefit. We use operating income as an indicator of the productivity of our business and our ability to manage SG&A expenses. Operating income percentage measures operating income as a percentage of our net sales.
22
Results of Consolidated Operations
The following tables summarize key components of our results of consolidated operations for the periods indicated, both in dollars and as a percentage of our net sales.
Thirteen Weeks Ended
Thirty-Nine Weeks Ended
November 2, 2024
October 28, 2023
November 2, 2024
October 28, 2023
(in millions, except percentages and total stores)
Consolidated Statements of Operations Data (1):
Net sales
$
843.7
$
736.4
$
2,485.6
$
2,221.6
Cost of goods sold (exclusive of items shown separately below)
585.7
513.6
1,692.3
1,499.4
Selling, general and administrative expenses
215.4
173.1
594.4
511.4
Depreciation and amortization
43.3
33.6
121.9
93.7
Operating (loss) income
(0.6)
16.1
77.1
117.1
Interest income and other income
2.8
3.4
10.9
11.4
Income before income taxes
2.2
19.6
87.9
128.6
Income tax expense
0.5
5.0
21.8
29.6
Net income
$
1.7
$
14.6
$
66.2
$
98.9
Percentage of Net Sales (1):
Net sales
100.0
%
100.0
%
100.0
%
100.0
%
Cost of goods sold (exclusive of items shown separately below)
69.4
69.7
68.1
67.5
Selling, general and administrative expenses
25.5
23.5
23.9
23.0
Depreciation and amortization
5.1
4.6
4.9
4.2
Operating (loss) income
(0.1)
2.2
3.1
5.3
Interest income and other income
0.3
0.5
0.4
0.5
Income before income taxes
0.3
2.7
3.5
5.8
Income tax expense
0.1
0.7
0.9
1.3
Net income
0.2
%
2.0
%
2.7
%
4.5
%
Operational Data:
Total stores at end of period
1,749
1,481
1,749
1,481
Comparable sales increase (decrease)
0.6
%
2.5
%
(2.6)
%
2.6
%
Average net sales per store (2)
$
0.5
$
0.5
$
1.5
$
1.6
(1)Components may not add to total due to rounding.
(2)Only includes stores that opened before the beginning of the thirteen weeks ended and thirty-nine weeks ended.
Thirteen Weeks Ended November 2, 2024 Compared to the Thirteen Weeks Ended October 28, 2023
Net Sales
Net sales increased to $843.7 million in the thirteen weeks ended November 2, 2024 from $736.4 million in the thirteen weeks ended October 28, 2023, an increase of $107.3 million, or 14.6%. The increase was the result of a non-comparable sales increase of $103.4 million and a comparable sales increase of $3.9 million. The increase in non-comparable sales was primarily driven by new stores that opened in fiscal 2024 and the number of stores that opened in fiscal 2023 but have not been open for 15 full months.
Comparable sales increased0.6%. This increase resulted from an increase of approximately 1.2% in the average dollar value of transactions, partially offset by a decrease of approximately 0.6% in the number of transactions.
23
Cost of Goods Sold and Gross Profit
Cost of goods soldincreased to $585.7 million in the thirteen weeks ended November 2, 2024 from $513.6 million in the thirteen weeks ended October 28, 2023, an increase of $72.1 million, or 14.0%. The increase in cost of goods sold was primarily the result of an increase in merchandise cost of goods sold resulting from an increase in net sales and included the impact of a non-recurring inventory write-off. Also contributing to the increase in costs of goods sold was an increase in store occupancy costs primarily resulting from new store openings.
Gross profit increased to $258.0 million in the thirteen weeks ended November 2, 2024 from $222.8 million in the thirteen weeks ended October 28, 2023, an increase of $35.2 million, or 15.8%. Gross margin increased to 30.6% in the thirteen weeks ended November 2, 2024 from 30.3% in the thirteen weeks ended October 28, 2023, an increase of approximately 30 basis points. The increase in gross margin was primarily the result of a decrease as a percentage of net sales in distribution costs and merchandise cost of goods sold, which included lapping higher inventory shrinkage and the impact of a non-recurring inventory write-off. This decrease was partially offset by an increase as a percentage of net sales in store occupancy costs.
Selling, General and Administrative Expenses (including Depreciation and Amortization)
毛利潤 。 在權利益分享區間內， 七億九千三百三十萬美元 2023年第二季度和前六個月的數字。 截止到第三十九周 2024年11月2日 七億二千兩百二十萬美元 2023年第二季度和前六個月的數字。 截至39周 2023年10月28日， 增加 的 $7110萬或 9.8%毛利率下降至 31.9% in the thirty-nine weeks ended November 2, 2024 from 32.5% in the thirty-nine weeks ended October 28, 2023, a decrease of approximately 60 basis points. The decrease in gross margin was primarily the result of an increase as a percentage of net sales in store occupancy costs, partially offset by a decrease as a percentage of net sales in distribution costs.