Five Below Inc (FIVE)

Operating profit margin

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Operating income	US$ in thousands	385,571	345,043	379,880	154,803	217,284
Revenue	US$ in thousands	3,559,370	3,076,310	2,848,350	1,962,140	1,846,730
Operating profit margin		10.83%	11.22%	13.34%	7.89%	11.77%

February 3, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $385,571K ÷ $3,559,370K
= 10.83%

The operating profit margin of Five Below Inc has shown some fluctuations over the past five years. In FY2024, the operating profit margin decreased to 10.83% from 11.22% in FY2023. This decline may indicate that the company's operating expenses have increased relative to its revenue, impacting its profitability.

Compared to FY2022 where the operating profit margin was 13.34%, the margin in FY2024 has decreased significantly. This suggests that the company may have faced challenges in managing its operating costs or experienced a decrease in sales efficiency.

In FY2021, the operating profit margin was lower at 7.89%, indicating a potential improvement in the company's operational efficiency and cost management by FY2024. However, it is still below the levels seen in FY2022.

In FY2020, the operating profit margin stood at 11.77%, similar to the margin in FY2024. This stability in the operating profit margin over the past few years may indicate that the company has been able to maintain a certain level of operational efficiency despite fluctuations in other economic factors.

Overall, while the operating profit margin of Five Below Inc has shown some variability, it is essential for the company to closely monitor and manage its operating expenses to sustain and improve its profitability in the future.