Five Below Will Open 50 New Stores This Month and 100 More by Year-End

While major retailers are currently failing financially, discount chain Five Below is growing. The company, which specializes in selling items at or below $5, plans to expand by adding another 150 new stores by year-end.

During an earnings call on Wednesday, CFO Kristy Chapman shared that 50 of these new stores will be open by the end of this month. Where the other new Five Below stores will be is yet to be revealed. Currently, the teen and tween discount retailer has 1,807 locations in 44 states and Washington, D.C.

In its second quarter 2024 earnings report released last August, Five Below announced plans to open between 150 and 180 stores in 2025. On the low end, 150 new locations in 2025 are still below the 227 new stores opened in 2024 and the 204 launched in 2023.

While Five Below is rapidly expanding its store footprint, other retail chains are struggling. Rival discounter Dollar General is closing over 100 stores in the coming weeks.

Five Below 2024 Earnings and 2025 Outlook

Five Below reported net sales of $1.4 billion, an increase of 4%, in the fourth quarter of 2024. Comparable sales, which measures income from stores open a year or longer, fell 3%. Net income also dropped to $187.5 million from Q4 2023’s $202.2 million.

“It has been a busy three months at Five Below,” CEO Winnie Park said in the earnings statement. “We are executing our key strategies around product, value and store experience, and doing so with a sharpened focus on our core customer — the kid and the kid in all of us.”

Net sales for the entire year climbed nearly 9% to $3.9 billion. Declining from $301.1 million in 2023, net income for fiscal 2024 was $253.6 million.

By the end of the current quarter, Five Below predicts between $905 million and $925 million in sales. Comparable sales will be in the 0% to 2% range.

For fiscal 2025, the retailer projects $4.21 billion-$4.33 billion in sales and up to 3% growth in comparable sales. Analysts expect $4.25 billion, with 1.6% in same-store sales.

In the coming year, Five Below may have to contend with potential tariffs on imported goods. Per its annual filing with the Securities and Exchange Commission, the company gets a “significant majority” of its inventory from overseas.