Five Below Inc (FIVE)

Gross profit margin

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Gross profit	US$ in thousands	367,271	1,095,490	1,030,440	652,330	673,966
Revenue	US$ in thousands	3,559,370	3,076,310	2,848,350	1,962,140	1,846,730
Gross profit margin		10.32%	35.61%	36.18%	33.25%	36.50%

February 3, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $367,271K ÷ $3,559,370K
= 10.32%

Five Below Inc's gross profit margin has experienced a significant decline over the past five years. The gross profit margin stood at 36.50% on Feb 1, 2020, but has steadily decreased to 33.25% on Jan 30, 2021, and further declined to 36.18% on Jan 29, 2022. This trend continued as the margin dropped to 35.61% on Jan 28, 2023, and reached its lowest point at 10.32% on Feb 3, 2024.

This declining trend in the gross profit margin could indicate challenges in managing the cost of goods sold relative to revenue generated. It may raise concerns about the company's ability to maintain profitability and could suggest pricing pressures, higher production costs, or inefficiencies in the supply chain. Further analysis of cost structures and pricing strategies may be necessary for Five Below Inc to address the declining gross profit margin trend.