Five Below Inc (FIVE)

Gross profit margin

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Feb 3, 2024	Jan 31, 2024	Oct 31, 2023	Oct 28, 2023	Jul 31, 2023	Jul 29, 2023	Apr 30, 2023	Apr 29, 2023	Jan 31, 2023	Jan 28, 2023	Oct 31, 2022	Oct 29, 2022	Jul 31, 2022	Jul 30, 2022	Apr 30, 2022	Jan 31, 2022
Gross profit (ttm)	US$ in thousands	1,277,940	2,052,436	2,308,914	2,301,424	2,297,916	1,224,755	974,814	986,790	998,766	1,186,584	1,374,402	1,347,406	1,320,410	1,071,379	847,491	846,460	1,035,546	1,229,074	1,202,927	1,198,512
Revenue (ttm)	US$ in thousands	3,876,522	3,823,382	4,317,412	4,223,748	4,148,290	3,569,531	2,990,772	2,980,614	2,970,456	3,334,225	3,697,994	3,616,781	3,535,568	3,081,745	2,627,922	2,622,484	2,973,782	3,301,187	3,239,905	3,207,954
Gross profit margin		32.97%	53.68%	53.48%	54.49%	55.39%	34.31%	32.59%	33.11%	33.62%	35.59%	37.17%	37.25%	37.35%	34.77%	32.25%	32.28%	34.82%	37.23%	37.13%	37.36%

January 31, 2025 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,277,940K ÷ $3,876,522K
= 32.97%

The gross profit margin of Five Below Inc has shown fluctuations over the period from January 31, 2022, to January 31, 2025. The gross profit margin started at 37.36% in January 2022, slightly decreased to 37.13% in April 2022, and then increased again to 37.23% in July 2022. However, there was a noticeable decline in the gross profit margin to 34.82% in July 2022 and further decreased to 32.28% in October 2022.

Subsequently, the gross profit margin remained around the low 30s percentage range from October 2022 to July 2023, ranging from 32.25% to 33.62%. There was a slight improvement in the gross profit margin to 34.77% in January 2023 but then decreased again to 33.11% in October 2023. This decline continued into January 2024 where the gross profit margin was at 34.31%.

An unusual spike in February 2024 saw the gross profit margin jump dramatically to 55.39%, which was significantly higher compared to previous periods. This spike may be attributed to specific events or changes in the business operations during that time. Subsequently, the gross profit margin remained relatively high, staying in the mid-50s percentage range from April 2024 to October 2024, ranging from 53.48% to 54.49%.

However, a significant drop in the gross profit margin was observed in January 2025, decreasing to 32.97%, which marked a substantial decline compared to the previous period. The fluctuation in the gross profit margin indicates variability in the company's ability to generate profit from its core operations, and further analysis is warranted to understand the factors contributing to these fluctuations over time.