Five Below has maintained a focus on brick-and-mortar retail as it painstakingly curates on-trend merchandise for discovery.
The discount chain opened 33 new stores in Q1, ending the quarter with 658 stores in 32 states, a footprint increase of 19% from a year ago. New store productivity was about 124%, CEO Joel Anderson told analysts in a conference call, according to a transcript from Seeking Alpha. Adjusted for the timing of openings during the quarter and the calendar shift, new store productivity would still be north of 100%, he added.
Five Below expects to end the year with some 750 stores, Anderson said. The company’s total capital expenditure for this year is $137 million, which will be used to build new stores, remodel about 10 and build distribution centers.