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Five Below (Nasdaq: FIVE) | Company Profile, History, Competitors

 

Five Below (NASDAQ: FIVE) operates 625 stores in 32 US states. Five Below has a particular draw among Generation Z and millennials. Five Below operates an unique retail concept where everything is $5 or below.

FIVE was founded in 2002 and opened its first store in Philadelphia. In 2012, the company went public. FIVE unique value proposition is that all products in the store are organized by worlds and cost up to $5.

Business Overview

FIVE stores carry consumer discretionary products organized by eight worlds (Sports, Candy, Style, Room, Tech, Now, Create, Party). All of their products are $1 , $2, $3, $4,  $5.  

FIVE's target customers is a pre-teen and his/her parents. FIVE particularly targets Generation Z consumers. Generation Z prefers shopping in a store and values an in-store experience to shopping online. 

Strategy

FIVE management has estimated a US store opportunity of 2,500 stores, roughly 4 times where it is today. FIVE merchandising team is very strong and the FIVE store model has been tested in over 30 states.

Competition

FIVE competes with Big Box retailers like WMT and also faces online competition.  Most of FIVE's stores are located in shopping centers with big-box anchor stores. If the anchor stores close, FIVE may experience less traffic to their stores as well.

History

FIVE was founded by David Schlessinger and Thomas Vellios. It opened its first store in Philadelphia in 2002. FIVE has since expanded into the Northeast, South, Midwest and West markets. In 2012, FIVE went public.

Management

Joel Anderson (CEO): Joel Anderson has been President and CEO since 2015. Prior, he served as CEO of Walmart.com and divisional vice president of the Northern Plains division of Walmart.

Kenneth Bull (CFO): Kenneth Bull has served as CFO since 2012. He had served various roles at FIVE including treasurer, secretary and VP of finance. Prior, he was treasurer at Urban Outfitters.

Financials

 $ USD in millions    2013    2014 2015 2016 2017
 Revenues $535 $680 $832 $1,000 $1,278 
 Gross Profit $188 $238  $292  $357  $463 
 Operating Profit $54 $77  $93  $114  $157 
 Net Income $31 $48 $58  $72  $103 
 EPS $0.59  $0.89  $1.06  $1.31  $1.86