Five Below Testing $10 Products
Five Below, which has made its mark by selling products for $5 or less, is moving slightly upscale.
The Philadelphia-based chain launched a 10 Below section in six stores in October featuring products priced up to $10. The items include Star Wars action figures and other toys, Bluetooth speakers, gaming controllers, home furnishings (small tables, chairs and shelving) and pet beds and toys.
The company has been developing the 10 Below concept for “quite some time,” CEO Joel Anderson said in releasing Q3 earnings. Indeed, last year it sued the New York-based ice cream company 10Below for trademark infringement when it opened a store (since closed) in Philadelphia (where Five Below has its headquarters). 10Below’s three New York locations so far haven’t rebranded. Five Below has had the 10 Below trademark since 2002, the company said.
Five Below’s net income increased 36.8% $13.5in Q3 ended Nov. 3 as revenue rose 21.6% to $312.8 million. Same-store sales rose 3.6%. Five Below’s Q3 inventory rose to $339 million from $271 million a year earlier as the chain took in additional inventory as a hedge against potential 25% tariffs starting Jan. 1 on goods imported from China, CFO Kenneth Bull said.
Five Below, Kenneth Bull, CFO, 215-546-7909, [email protected]