Five Below, Inc. (NASDAQ:FIVE) Q3 2019 Earnings Conference Call - Final Transcript
Dec 04, 2019 • 04:30 pm ET
Good afternoon, and welcome to the Five Below Third Quarter 2019 Earnings Conference Call. [Operator Instructions]
I would now like to turn the conference over to Christiane Pelz, Vice President of Investor Relations. Please go ahead.
Thank you, Gary. Good afternoon, everyone and thanks for joining us today for Five Below's third quarter 2019 financial results conference call. On today's call are Joel Anderson, President and Chief Executive Officer; and Ken Bull, Chief Financial Officer and Treasurer. After management has made their formal remarks, we will open the call to questions.
I need to remind you that certain comments made during this call may constitute forward-looking statements and are made pursuant to and within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 as amended. Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements. Those risks and uncertainties are described in the press release and our SEC filings.
The forward-looking statements made today are as of the date of this call and we do not undertake any obligation to update our forward-looking statements. If you do not have a copy of today's press release, you may obtain one by visiting the Investor Relations page of our website at fivebelow.com.
I will now turn the call over to Joel.
Joel D. Anderson
Thank you, Christiane, and thanks everyone for joining us for our third quarter earnings call. I will review the highlights of the quarter before handing it over to Ken to discuss our financials and our outlook and then we will open the call up for questions.
We are pleased to have delivered a strong Q3. Sales came in above our outlook, increasing 21% to $377 million and earnings per share of $0.18 beat our guidance range by a penny. We saw continued outperformance of our new stores and comp growth of 2.9% driven by increases in both basket and transactions.
New store performance was again a highlight of our third quarter results. During Q3, we opened 61 new stores which is six more than planned and the most stores we've ever opened in a single quarter. Our new store count to over 144 stores at the end of Q3 and we have sense open six more to complete our planned 150 new stores for the year. We opened in diverse markets across 24 states and seven of these Q3 new stores made our top 25 all-time ball grand opening list. New markets, range from Lincoln, Nebraska to Tulsa, Oklahoma, as well as Fresno, California, illustrating yet again the breadth of Five Below's appeal. With an industry-leading less than one-year average payback period on our new store investment. New stores remain the best use of our capital.
During the third quarter we once again experienced broad-based performance across our eight worlds led by Style, Tech, Candy and Room. In addition to a strong back-to-school season, a variety of trends contributed to our