New York -- Five Below successfully completed its initial public offering of 9.6 million shares this week in a move that could see the company eventually grow from its current 200 locations to 2,000.
The Philadelphia-based discount chain targets tweens and teens with a wide range of accessories and other goods, all priced at $5 or below. It is on track to add 50 stores this year, and plans to open 60 locations in 2012.
Five Below’s same-store sales increased 12.1% in 2009, 15.6% in 2010 and 7.9% last year. Over the same period, operating income increased from $6.9 million to $26.2 million for a compound annual growth rate of 95%.
“We focus our merchandising strategy on maintaining core categories within our stores, but aim to generate high item velocity and sell-through to keep our assortment fresh and drive repeat visits,” the company said in its registration statement filed with the Securities and Exchange Commission. “We monitor trends in our target demographic market, historical sales trends of current and prior products and the success of new product launches to ensure that our merchandise is relevant for our customers.”
The company's shares trading on the Nasdaq exchange under the symbol "FIVE."