Five Below, Inc. (NASDAQ:FIVE) Q2 2019 Earnings Conference Call - Final Transcript

Aug 28, 2019 • 04:30 pm ET

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Five Below, Inc. (NASDAQ:FIVE) Q2 2019 Earnings Conference Call - Final Transcript

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Q & A
Analyst
Judah Frommer

Executive
Joel D. Anderson

Thank you.

Operator
Operator

And our next question comes from Bob summers from Buckingham. Please go ahead with your question.

Analyst
Bob summers

Good afternoon. So I just want to clarify that the chain wide price increases you're talking about things that you've already tested, and that's what's really embedded in the current guidance. And if you could maybe characterize that in terms of percent SKUs or percent of sales that would be great.

Executive
Joel D. Anderson

Yes, we are talking about stuff that we've tested to be clear we -- especially with last week's announcements we've went and run another test where we've widened and the number of items that we've tested, but clearly when it's all done and said, Bob. The vast majority of our items will still be priced below $5. So, and when I say that -- I mean 90% number. And so it's a combination of working in the $2 to $4 range and a very small percentage of our overall $5 items.

Analyst
Bob summers

And then just on the $5.55 price point it was very centralized category in the store that I was in. And I would argue it's one that has very strong value. So to me, it's not surprising that there was little demand destruction, but as you think about expanding that, would you do it in the same way in terms of blocks within the store would you be more product-specific?

Executive
Joel D. Anderson

I think we -- the combination of the two and I appreciate you calling that out, Bob, because that's exactly how we looked at it. And we really did focus on the areas where we thought we had the biggest GAAP and value. And I think as we expand we'll move into some other areas that we believe we have a large gap in price, but at the same time, I think doing it onesie, twosie all over the store is a little disingenuous and it's really hard for the customer to understand that. So it will be concentrated in blocks for sure.

Analyst
Bob summers

Okay. Thank you.

Executive
Joel D. Anderson

Thanks, Bob. Appreciate it.

Operator
Operator

And ladies and gentlemen, at this time, I'm showing no additional questions. I'd like to turn the conference call back over to management for any closing remarks.

Executive
Joel D. Anderson

Thanks everyone for joining us today. I know you had a lot of questions about tariffs and hopefully we've been pretty transparent on those and helping you understand where we're going. We look forward to speaking you again during the holidays and as always, I encourage you to get out there and visit our stores and let's go and have fun, appreciate the support of Five Below. Have a great evening. Bye.

Operator
Operator

[Operator Closing Remarks]