Five Below, Inc. (FIVE) Q2 2022 Earnings Call Transcript

For the period ending July 30, 2022

August 31, 2022 4:30 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, and welcome to the Five Below Second Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note that this event is being recorded.

I would now like to turn the conference over to Christiane Pelz, Vice President of Investor Relations. Please go ahead. -- Please go ahead, Christiane.

Christiane Pelz

Hi. Thank you, Cole. Good afternoon, everyone, and thanks for joining us today for Five Below second quarter 2022 financial results conference call. On today's call are Joel Anderson, President and Chief Executive Officer; and Ken Bull, Chief Financial Officer and Treasurer. After management has made their formal remarks, we will open the call to questions.

I need to remind you that certain comments made during this call may constitute forward-looking statements and are made pursuant to and within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 as amended. Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements. Those risks and uncertainties are described in the press release and our SEC filings.

The forward-looking statements that are made today are as of the date of this call and we do not undertake any obligation to update our forward-looking statements. If you do not have a copy of today's press release, you may obtain one by visiting the Investor Relations page of our website at fivebelow.com.

I will now turn the call over to Joel.

Joel Anderson

Thank you, Christiane, and thanks everyone for joining us for our second quarter 2022 earnings call. Ken and I will discuss three broad topics on today's call: First, review the second quarter results. Second, discuss our updated outlook for the third quarter and the year. And third, discuss the strategic initiatives we are focused on to execute our longer-term vision for growth, the Triple-Double. Despite near-term challenges in 2022, we remain very excited about our business model and future opportunities for Five Below.

Now onto the results for the quarter. Total sales in the second quarter grew 3.5% over last year to $669 million and comparable sales decreased 5.8%, driven by reductions in ticket and transactions. While this result was lower than expected, we still delivered diluted earnings per share of $0.74 at the low end of guidance due to disciplined expense management. We believe our sales were impacted by both the macroenvironment as well as factors specific to Five Below.