Five Below Announces Additional Actions in Response to COVID-19

4/13/20

PHILADELPHIA, PA, April 13, 2020 (GLOBE NEWSWIRE) -- Five Below, Inc. (NASDAQ:FIVE), the trend-right, high-quality extreme-value retailer for tweens, teens and beyond, today announced additional measures it is taking in response to the current business environment created by COVID-19.

“As we navigate this difficult time, we remain grounded in a set of unshakable values, including ‘Hold the Penny Hostage,’ which takes on even greater significance in this moment,” said CEO Joel Anderson. “We are confident about our capacity to weather this storm and will continue to take strategic measures – including reducing our expenses and tightly managing our cash spend and liquidity – designed to safeguard our future. We look forward to welcoming our crew and customers back to our stores as soon as we can do so safely.”

As previously announced on March 31, 2020, Five Below extended the temporary closures of its stores and will reopen stores as soon as federal, state and local authorities allow, targeting May 1, 2020. The Company’s ecommerce website remains open. A majority of the store and distribution center associates were furloughed in connection with the extended closures. The Company will cover health benefit costs for furloughed employees through April.

Today the Company announced additional actions taken to mitigate the financial impact of this current situation:

  • A voluntary temporary base salary reduction of 50% for Joel Anderson, Chief Executive Officer, and a 25% base salary reduction for the remainder of the executive leadership team that report into Mr. Anderson.
  • The Board of Directors elected to forgo its quarterly cash retainers for the first quarter of 2020.
  • Delayed annual salary increases for corporate associates.
  • Significant non-payroll expense reductions including advertising, occupancy and other store operating expenses, distribution and corporate office operating expenses, as well as professional and consulting fees.
  • Cancellation of orders and receipt delays to manage inventory levels, as well as extending payment terms for product and non-product vendors.
  • Significant reduction in the 2020 capital expenditure budget, including delaying purchase and construction of a new Midwest distribution center.


Customers can continue to find Five Below’s amazing products online at www.fivebelow.com.

About Five Below:

Five Below is a leading high-growth value retailer offering trend-right, high-quality products loved by tweens, teens and beyond. We know life is way better when you're free to "let go & have fun" in an amazing experience filled with unlimited possibilities. With most items priced $1-$5, and some extreme value items priced up to just $10, we make it easy to say YES! to the newest, coolest stuff across 8 awesome Five Below worlds: Style, Room, Sports, Tech, Create, Party, Candy and Now. Founded in 2002 and headquartered in Philadelphia, Pennsylvania, Five Below today has over 900 stores in 36 states. For more information, please visit www.fivebelow.com!