Five Below’s move to open more than 750 new stores since fiscal 2016 bodes well for the future of the kids and teen-focused retailer, and tells a story deeper than its third-quarter results, which included $608 million in sales for the three months ending Oct. 30, The Motley Fool reported on Tuesday (Dec. 14).
Five Below opened 583 stores from fiscal 2016 to 2020 — doubling its store count — and is planning to add another 170 stores in this fiscal year. As of Oct. 30, the retailer had 1,173 stores in 40 states across the U.S.
“As we look ahead, we are confident that we will continue to drive sustainable long-term growth while realizing our 2,500-plus store potential in the U.S.,” Five Below Chief Executive Officer Joel Anderson said in a statement.
Quick math shows that Five Below expects to double its store count again, a move that would add even more revenue and sales to the company’s bottom line. The average Five Below location costs about $300,000 to build, with an expected return in the first year of $450,000, The Motley Fool reports.
Five Below has increased sales, profits and its store count since 2016 without adding debt, the report says.
“There is no other national retailer out there that is specifically targeting teens and tweens and kids,” said Anderson during the third-quarter earnings call on Dec. 1. Five Below sells everything from home furnishings and games to tech and beauty products, typically for less than $5.
Related news: Five Below Continues Store Count Growth as Sales Rise
Five Below added 34 new stores across 19 states in the second quarter, with 1,121 locations in 39 U.S. states. In the first half of the year, Five Below opened 102 new stores.
In June, Five Below expanded its same-day delivery partnership with Instacart to more than 700 new locations after launching the pilot in December 2020 at some stores in Detroit, Cleveland, Chicago, Buffalo and Baltimore, as well as locations in Texas, California and Florida.
