FIVE BELOW Reports Strong Earnings Results for Q2 FY2024
September 1, 2023
☀️Earnings Overview
On August 30, 2023, FIVE BELOW ($NASDAQ:FIVE) released its financial results for the quarter ended July 31, 2023, of FY2024. This quarter’s total revenue amounted to USD 759.0 million, a 13.5% increase when compared to the same quarter of the prior year. Net income rose 13.3% year-over-year, to USD 46.8 million.
Price History
On Wednesday, FIVE BELOW reported strong earnings results for Q2 FY2024, with the stock opening at $181.5 and closing the day at $183.0. This marks an increase of 0.1% from the prior closing price of 182.7. The strong performance was driven by robust sales, particularly in the footwear and seasonal categories, as well as strength in the company’s online and digital operations. The success was also attributed to FIVE BELOW’s strategic initiatives to expand its product selection and to increase its store presence over the past year. This included launching new product lines and expanding into new markets across the US.
Additionally, the company has made significant investments in its digital platform and loyalty program, which have both helped to drive sales growth. Looking ahead, FIVE BELOW continues to be optimistic about its long-term outlook and believes it is well-positioned to capitalize on several growth opportunities in the coming quarters. As such, the company remains confident that its Q2 FY2024 results are a sign of further success in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Five Below. More…
| Total Revenues | Net Income | Net Margin |
| 3.25k | 271.78 | 8.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Five Below. More…
| Operations | Investing | Financing |
| 438.04 | -243.16 | -15.43 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Five Below. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.55k | 2.11k | 25.87 |
Key Ratios Snapshot
Some of the financial key ratios for Five Below are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 24.4% | 43.5% | 10.7% |
| FCF Margin | ROE | ROA |
| 5.5% | 15.4% | 6.1% |
Analysis
At GoodWhale, we conducted an analysis of FIVE BELOW‘s wellbeing. Our analysis showed that according to Star Chart, FIVE BELOW is strong in growth and profitability, medium in asset, and weak in dividend. This type of company would be very attractive to investors who are looking for capital appreciation and consistent returns. Moreover, GoodWhale’s health score for FIVE BELOW was 8/10 with regard to its cashflows and debt. This indicates that FIVE BELOW is capable of paying off debt and funding future operations. Therefore, we conclude that FIVE BELOW is a great option for investors who want to benefit from the company’s strong competitive advantage while also having the assurance that their money will be safe. More…
Peers
Despite the intense competition, Five Below Inc continues to thrive and has managed to carve out a niche for itself in the market.
– Ross Stores Inc ($NASDAQ:ROST)
Ross Stores Inc is a chain of American off-price department stores. It operates under two brands, Ross and dd’s DISCOUNTS. As of 2022, the company had a market cap of 40.44B, making it one of the largest retailers in the United States. In addition, Ross Stores Inc also has a strong Return on Equity (ROE) of 29.12%, which indicates that the company is making effective use of its shareholders’ funds. The company’s success is attributed to its effective management strategies and cost containment practices. The company has been able to maintain its market share and profitability despite the presence of competitors.
– O’Reilly Automotive Inc ($NASDAQ:ORLY)
O’Reilly Automotive Inc is an American retail company specializing in the distribution of automotive aftermarket parts, tools, supplies, equipment and accessories. As of 2022, O’Reilly Automotive Inc has a market capitalization of 50.97 billion US dollars, making it one of the largest publicly traded auto parts retailers in the US. The company’s Return on Equity (ROE) stands at -159.26%, indicating that it is not generating enough returns for its shareholders. Despite this, the company continues to focus on expanding its operations in order to increase its market share and profitability.
– Kirkland’s Inc ($NASDAQ:KIRK)
Kirkland’s Inc is a specialty retailer of home décor, furniture, and gifts. It has a market cap of 46.43M as of 2022, which is relatively low compared to other companies in the home décor industry. Despite this, the company has still managed to maintain a negative Return on Equity (-43.0%) which indicates that the company has failed to generate a return on the investments of its shareholders. This could be due to their lack of resources, or because their current strategy may not be optimal for creating shareholder value.
Summary
FIVE BELOW reported strong earnings results for its second quarter of FY2024, with total revenue increasing by 13.5% year-over-year and net income increasing by 13.3%. This suggests that the company is continuing to grow its business and deliver positive results for investors. Analysts have noted that the company is well-positioned to benefit from increased spending from consumers amid a post-pandemic recovery. Going forward, investors should keep an eye on the company’s ability to continue growing its revenue and profits, as well as its ability to expand into new markets.
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