Five Below, Inc. · NASDAQ:FIVE
Five Below — Investor Presentation (March 2023)
30 slides from Five Below's investor presentation, March 2023
Slide 1: Investor Presentation - March 2023
investor presentation - mar 2023
Slide 2: Forward Looking Statements
forward looking statements Forward-Looking Statements: This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, wh
Slide 3: Our story... read on!
our story... read on! about five bElOW our unique experience our powerful store model the numbers our vision for growth: triple-double 3
Slide 4: Five Below is a unique investment opportunity
five Below is a unique investment opportunity Curated “wow” assortment that flexes across 8 worlds Incredible value with a fun, differentiated store experience Leading new store model: < 1 year payback allows for self-funded growth & no debt Significant white space: > 3,500 U.S. Locations by 2030 Gr
Slide 5: About Five Below
a bo ut five . be lo w ch ec k i t out ! 5
Slide 6: The purpose-driven value retailer for tweens & teens and beyond
THE purpose-driven value retailer FOR TWEENS & TEENS AND BEYOND knows life is way better when you’re free to in an filled with priced so low, you can always say to the 6
Slide 7: Five Below DNA: our deeply held values and beliefs
five below dna: our deeply held Values and Beliefs valu v es & be havi ors. unleash your wow our passion. custom ers. five below is like a team of unstoppable superheroes is everything. every the customer . everyone’s unique backgro decision we make begins and and experiences blend togeund s ends wi
Slide 8: Tech. style. candy.
trend-right “wow” products at great value across 8 awesome worlds party. tech. play. create. style. new & now. 8 candy. room.
Slide 9: Unlimited possibilities driven by the newest, coolest stuff
unlimited possibilities driven by the newest, coolest stuff “craze” trends licensed trends & brands on-trend assortment (relevancy) 9
Slide 10: Tween & teen-focused with broad customer appeal
tween & teen-focused with broad customer appeal Gen Z 8–14 yr olds (Girls & Boys) average household income* $0 - $49,999 $50,000 - $74,999 46% 24% target customers Millennial / Gen X 14% 24–44 yr olds 2% 14% (Parents) N/A $75,000 - $99,999 $100,000+ *December ‘22 third-party consumer study 10
Slide 11: Our unique experience
our e uni qu e. erienc exp amaz i n g ! 11
Slide 12: An amazing, fun experience
an amazing, no one else does what we do in a fun experience 9,500 sq. ft. store! unique & engaging in-store experience like a treasure hunt! fun & dynamic with friendly “wow crew” & upbeat music easy-to-navigate with vibrant signs & low sightlines across the store iconic fixtures that encourage inte
Slide 13: Follow us!
our customers us because we’re still the yes! store! instagram tiktok facebook Singer Walker Hayes 32K Engagements 28K Engagements 450K Views 466K Engagements 83K Engagements 3.1M Views! 500K Views! scan to see more customer ♥ 13 follow us!
Slide 14: Our powerful store model
ou r ul po w er f s to re mo d e l . WHEREON TH E A C T I IS! 14
Slide 15: Proven success across diverse markets
proven success across diverse markets urban a suburban a semirural a • Fifth Ave •Pasadena, TX • Lake City, FL (New York City DMA*) (Houston DMA*) (Jacksonville DMA*) • New York, NY • Redlands, CA • London, KY • Los Angeles, CA • Roseville, MI • Tupelo, MS • Miami, FL • Greensboro, NC • San Angelo,
Slide 16: New store model & performance
new store model & performance 2012 2016-2018 actual 2022 (@ipo model) pre-pandemic (avg) current model sales (avg. unit volume) $2.1m $2.2m 4-wall $1.6m ebitda margin $525K $550K $340K 25% 25% 21.8% net investment(1) $300K $320K ~$400K industry-leading! payback <1Year <1Year <1Year (1) includes net
Slide 17: The numbers
th e s. n um ber we ’ r e a l l about r e s u lt s ! 17
Slide 18: Disciplined and profitable growth
disciplined and profitable growth 2017 2018 2019(1) 2020(2) 2021 2022 5YR CAGR store count 625 750 900 1,020 1,190 1,340 16% $3,076 $2,848 net $1,847 $1,962 $1,560 sales $1,278 19% $379.9 operating $217.3 $345 income $187.2 $154.8 17% $157.4 $278.9 net $261.5 income $149.6 $175.1 21% $123.4 $102.5 $
Slide 19: Strong business model drives self-funded growth
strong business model drives self-funded growth capex (1) strong cash position (2) AZ & IN DC $325 IN DC $288 $410 $399 $380 $28 TX + GA DC AZ & TX DC $252 $337 $31 $262 GA DC $212 $200 $140 $26 $52 $19 $114 $102 $94 $18 $32 $120 $169 $84 $86 $64 2018 2019 2020 2021 2022 2023e 2018 2019 2020 2021 20
Slide 20: Our vision for growth
ou r or io n vis th. f gr o w fu t u r e ’ s so br i g h t .. . 20
Slide 21: Triple Double! Vision for growth
vision for growth triple u.s. store base sales = DouBle eps= DouBle triple double top line & bottom Line DouBle ! 21
Slide 22: Five Pillars to achieve triple-double growth
Five Pillars to achieve triple-double growth 22
Slide 23: Store expansion: Five Below anywhere
store expansion five below anywhere 3,500+ (1) plan to cove continentalr the 200 u.s. new stores in 2023! ~1/3 way there! 1,340 AGR C 20% ~ 2023 552 states 215 Shipcenters in Conroe, TX, Forsyth, GA, Indianapolis, IN, Pedericktown, NJ and Buckeye, AZ 2012 2016 2022 potential (1) at IPO YE YE • conti
Slide 24: Store potential, Five Beyond everywhere
Store Potential Five BeyOnd everywhere Fast + Easy new ear piercing + associate assisted balloon launches! self checkout buy online, pick up in store! extreme value 24
Slide 25: Product & brand strategy
Product & Brand Strategy value, trends & wow! “S” trends! fun for it’s new, beyond $5 and still just a waaay BELOW the rest! buck squishmallows™ surprise & delight with distorted value! wireless speaker table sensory toys slime licker 73% 6ft Basketball hoop 52% big opportunity to increase * brand a
Slide 26: Analytic inventory optimization drives sales & profits
inventory optimization drive sales & profits egrit y Int ro p cess i z a t io n analytic inventory cycle V is s ch im te ib pt li i ty o 26
Slide 27: Culture. talent. scale.
Crew Innovation create amazing experiences in our offices in our DCs in our stores culture. talent. scale. • bring our purpose of • attain & retain • evolve oranizational “let go & have fun” to life top-tier leaders structure to drive throughout the company continued growth • foster best-in-class en
Slide 28: Disciplined growth led by experienced leadership
Disciplined growth led by experienced leadership executive role year joined experience joel anderson President & Chief Executive Officer 2014 Walmart, Lenox, Toys ‘R Us ken bull Chief Operating Officer & Chief Financial Officer 2005 Urban Outfitters, Eagle’s Eye eric specter Chief Administrative Off
Slide 29: Five Below is a unique investment opportunity
five below is a unique investment opportunity Curated “wow” assortment that flexes across 8 worlds Incredible value with a fun, differentiated store experience Leading new store model: < 1 year payback allows for self-funded growth & no debt Significant white space: > 3,500 U.S. Locations by 2030 Gr
Slide 30: fivebelow.com
30 fivebelow.com