Discount store chain Five Below Inc. (NASDAQ: FIVE) has reported lower profit for the third quarter of fiscal 2022, despite a 6% increase in sales. Comparable store sales declined by 2.7%.
Five Below’s net sales increased 6.2% year-over-year to $645.0 million in the third quarter when the company opened 40 new stores and ended the period with 1,292 outlets in 42 states. Comparable-store sales decreased by 2.7% during the three-month period.
Net profit declined to $16.1 million or $0.29 per share in the October quarter from $24.2 million or $0.43 per share in the third quarter of 2021. Ticket and transaction metrics improved throughout the quarter.
Read management/analysts’ comments on quarterly results
“We are continuing to play offense, and the progress we made across product, experience, and supply chain will all drive our holiday execution. With the completion of our five-node distribution network, we are set up to deliver products to our growing store base even more efficiently. As we look ahead, we are focused more than ever on delivering an exciting holiday assortment of extreme value products that promise to Wow our customers while also providing a fun shopping experience,” said Five Below’s CEO Joel Anderson.