Five Below, Inc. (FIVE): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how a store that sells items for $5 or less can thrive in today's economy? This blog post dives into Five Below, Inc. (FIVE), a unique retailer that has captured the hearts of teens and pre-teens with its treasure trove of affordable and trendy products. Keep reading to explore the history, ownership, mission, and business model that have propelled Five Below to over 1,800 stores in 44 states, generating net sales of $3.88 billion in fiscal year 2024.

Five Below, Inc. (FIVE) History

Five Below, Inc. Founding Timeline

Year established

The company was established in 2002.

Original location

The first store was located in Wayne, Pennsylvania.

Founding team members

The founding team members include:

• Tom Vellios
• David Schlessinger

Initial capital/funding

The initial capital and funding details are not available in the provided search results.

Five Below, Inc. Evolution Milestones

Five Below, Inc. Transformative Moments

Key transformative moments for the company include:

• The IPO in 2012: This provided significant capital for expansion and increased the company's visibility.
• Introduction of 'Ten Below' Items: Testing higher price points allowed the company to diversify its product offerings and attract a broader customer base.
• Adapting to the COVID-19 Pandemic: Successfully navigating the challenges of the pandemic demonstrated the company's resilience and adaptability.

To gain more insight into the company's guiding principles, explore Mission Statement, Vision, & Core Values of Five Below, Inc. (FIVE).

Five Below, Inc. (FIVE) Ownership Structure

Understanding Five Below's ownership structure provides insights into who controls the company and whose interests might be driving its strategic decisions. A mix of institutional and individual shareholders currently own Five Below.

Five Below's Current Status

Five Below Inc. is a publicly traded company, which means its shares are available for purchase by the general public on a stock exchange. It is listed on the NASDAQ under the ticker symbol FIVE. Information about the company can be found through investor relations resources, such as Five Below's investor relations page: Breaking Down Five Below, Inc. (FIVE) Financial Health: Key Insights for Investors.

Five Below's Ownership Breakdown

The ownership of Five Below, Inc. is distributed among various shareholders, including institutional investors, individual shareholders, and company insiders. The following table summarizes the ownership breakdown:

Five Below's Leadership

Five Below's leadership team is responsible for the strategic direction and operational management of the company. Key members of the leadership team as of April 2025 include:

• Joel D. Anderson: President, Chief Executive Officer & Director
• Kristin A. Wooten: Chief Financial Officer & Treasurer
• George R. Makris Jr.: Independent Chairman of the Board

Five Below, Inc. (FIVE) Mission and Values

Five Below's mission and values reflect its commitment to providing trend-right, high-quality products at extreme values, while creating an amazing experience for its customers and fostering a fun, growth-oriented environment for its associates.

Five Below's Core Purpose

Official mission statement

Five Below's mission statement is: 'Let go & have fun.'

Vision statement

While a specific, formal vision statement is not explicitly publicized, Five Below's actions and strategic goals suggest a clear vision:

• To be the leading value retailer offering a wide assortment of trend-right, high-quality merchandise.
• To create a fun and engaging shopping experience that appeals to a broad customer base.
• To drive continuous growth and profitability through strategic store expansion and innovative product offerings.

Company slogan/tagline

Five Below's tagline is 'Hot Stuff. Cool Prices.'

To learn more about Five Below, Inc. (FIVE), check out this related article: Exploring Five Below, Inc. (FIVE) Investor Profile: Who’s Buying and Why?

Five Below, Inc. (FIVE) How It Works

Five Below, Inc. operates as a specialty value retailer, offering a wide range of trend-right, high-quality products targeted at teens, pre-teens and beyond, all priced at compelling values. The company focuses on creating a fun and engaging shopping experience within its stores, aiming to become a go-to destination for its target demographic.

Five Below's Product/Service Portfolio

Five Below's Operational Framework

Five Below's operational framework is designed to support its value proposition and drive efficiency. Key aspects include:

• Merchandising Strategy: Five Below focuses on curating a selection of on-trend products at attractive price points, primarily within the $1-$5 range, though some items may exceed this price point.
• Store Design: The stores are designed to be visually appealing and easy to navigate, creating a treasure hunt atmosphere that encourages impulse purchases.
• Supply Chain Management: The company manages a robust supply chain to ensure a consistent flow of merchandise to its stores, often sourcing products from overseas.
• Inventory Turnover: Five Below emphasizes high inventory turnover to keep its product assortment fresh and appealing, responding quickly to changing trends.
• Real Estate Strategy: The company strategically selects store locations in high-traffic areas, often near other retailers that appeal to its target demographic.

Five Below's Strategic Advantages

Five Below maintains several strategic advantages that contribute to its success:

• Value Proposition: Its core appeal is offering products at extremely competitive prices, attracting value-conscious consumers.
• Targeted Demographic: Five Below specifically caters to teens and pre-teens, understanding their preferences and trends.
• Experiential Shopping: The store environment is designed to be engaging and fun, encouraging repeat visits and impulse purchases.
• Adaptability: Five Below demonstrates the ability to quickly adapt to changing consumer trends and preferences.
• Scalable Business Model: The company has a proven track record of expanding its store base while maintaining profitability. As of fiscal year 2024, Five Below operated over 1,500 stores across the United States.

More insights about the company can be found here: Exploring Five Below, Inc. (FIVE) Investor Profile: Who’s Buying and Why?

Five Below, Inc. (FIVE) How It Makes Money

Five Below, Inc. primarily generates revenue by offering a wide assortment of trend-right, high-quality products that appeal to tweens, teens and beyond, all priced at $5 and below, with a curated selection of products priced above $5. These products span various categories, including accessories, sporting goods, games, novelties, home décor, beauty, and arts and crafts.

Five Below, Inc.'s Revenue Breakdown

As of April 2025, detailed revenue stream percentages for Five Below, Inc. are not explicitly available. However, based on the company's business model, we can infer a likely revenue breakdown.

Five Below, Inc.'s Business Economics

Five Below, Inc.'s business economics are built around several key factors:

• Value Proposition: The company attracts customers by offering a wide variety of products priced at $5 or less, creating a treasure hunt experience.
• Merchandise Mix: Five Below strategically manages its product assortment to include both licensed and private label goods, allowing for higher margins on exclusive items.
• Store Expansion: A significant driver of revenue growth is the continuous expansion of its store base across the United States.
• Pricing Strategy: The core pricing strategy revolves around the $5 threshold, which serves as a psychological anchor for value-conscious shoppers.
• Turnover Rate: High inventory turnover, driven by constantly changing and trending products, encourages frequent visits and repeat purchases.

Five Below, Inc.'s Financial Performance

Key aspects of Five Below, Inc.'s financial performance include:

• Net Sales: For the fiscal year 2024, Five Below, Inc. reported net sales of approximately $3.56 billion, reflecting a substantial increase compared to previous years.
• Gross Profit: The gross profit for the same period stood at around $1.2 billion, showcasing the company's ability to maintain healthy margins despite its aggressive pricing strategy.
• Net Income: Five Below, Inc.'s net income was approximately $270 million for fiscal year 2024, indicating strong profitability and efficient cost management.
• Comparable Sales Growth: A critical metric for retailers, Five Below, Inc. has generally demonstrated positive comparable sales growth, driven by both increased transaction count and average transaction value.
• Store Growth: As of early 2025, Five Below, Inc. operates over 1,500 stores across the United States, with plans for continued expansion in the coming years, signaling sustained confidence in its business model.

To gain more insights into the company's guiding principles, explore Mission Statement, Vision, & Core Values of Five Below, Inc. (FIVE).

Five Below, Inc. (FIVE) Market Position & Future Outlook

Five Below, Inc. is strategically positioned for continued growth, targeting value-conscious consumers with its trend-right, high-quality merchandise at affordable prices. The company's expansion strategy, focus on enhancing customer experience, and disciplined financial approach underpin a positive future outlook.

Competitive Landscape

The competitive landscape for Five Below includes a mix of discount retailers and specialty stores. Here's an overview:

Opportunities & Challenges

Five Below faces a dynamic market environment, presenting both opportunities and challenges that will shape its future trajectory.

Industry Position

Five Below has carved out a unique niche in the retail sector by offering a differentiated value proposition that resonates with its target demographic. Key aspects of its industry positioning include:

• Strategic Store Expansion: The company is focused on expanding its store footprint across the United States, targeting both new and existing markets with a long-term goal of 3,500+ stores nationwide.
• Compelling Value Proposition: Five Below's merchandise mix, priced primarily between $1 and $5, appeals to budget-conscious consumers seeking trendy and exciting products.
• Strong Brand Affinity: The brand has cultivated a strong connection with its core customer base of teens and pre-teens, who are drawn to the store's ever-changing assortment of on-trend items.
• Experiential Shopping Environment: Five Below stores are designed to create a fun and engaging shopping experience, encouraging customers to browse and discover new products.

To gain more insight into the company's core principles, you can explore Mission Statement, Vision, & Core Values of Five Below, Inc. (FIVE).