Five Below, Inc.

quarter 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. Please note this event is being recorded. I would now like to turn the conference over to Christiana Pelz, Vice President of Investor Relations. Please go ahead.

Thank you, Drew. Good afternoon, everyone, and thanks for joining us today for Five Below's first quarter 2025 financial results conference call. On today's call are Winnie Park, CEO, Christy Chipman, Chief Financial Officer and Treasurer, and Ken Bull, Chief Operating Officer. After management has made their formal remarks, we will open the call to questions. I need to remind you that certain comments made during this call may constitute forward-looking statements and are made pursuant to and within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 as amended. Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements. Those risks and uncertainties are described in the press release and our SEC filings. The forward-looking statements today are as of the date of this call, and we do not undertake any obligation to update our forward-looking statements. In this presentation, we will refer to our SG&A expenses. For us, SG&A means selling general and administrative expenses, including payroll and other compensation, marketing and advertising expense, depreciation and amortization expense, and other selling and administrative expenses. Additionally, we will be discussing certain non-GAAP financial measures. A reconciliation of these items to U.S. GAAP are included in today's press release. If you do not have a copy of today's press release, you may obtain one by visiting the investor relations page of our website at fivebelow.com. I will now turn the call over to Winnie.

Thank you so much, Christiana. Hello, and thank you for joining us. As we announced last month, we had a strong first quarter with financial results that exceeded our expectations. I'm incredibly proud of the Five Below team for driving these results with a maniacal focus on delivering a great customer experience, grounded in fun and extreme value. We remain committed to putting our customer first with a focus on product, value, and store experience. in order to achieve our vision to be the destination for the kid and the kid in all of us. We are the cool store for kids and the yes store for parents. What differentiated this past quarter was our heightened focus on the customer and working as a tight-knit, multidisciplinary team from merchandising, planning, and allocations to marketing, store operations, and supply chain. We made great strides on one, sourcing amazing product focused on Easter, spring break, trend right beauty, novelty food and candy, as well as relevant cultural zeitgeist moments like Minecraft. Two, amplifying these products with end-to-end storytelling that started with social media through to compelling in-store floor sets. Three, Ensuring better in stock positions with tight alignment between our teams at wildtown our ship centers and the store fleet and for continuing to benefit from investment in labor hours and operating efficiencies All while planning for the future within a dynamic tariff environment The result was a strong first quarter led by product that resonated with our customers and We had broad-based outperformance across the majority of our worlds, proving that our customer-centric strategies focused on product, value, and experience are working. The Five Below team demonstrated that they can execute at a very high level in service of our customer and will carry this forward into the balance of the year. Our customers have validated our place in the market as a resource for fun and great value. Let me share a few highlights from our first quarter performance. Sales and comps exceeded our updated guidance, with sales of $971 million and comparable sales increase of 7.1%. We were excited to drive these comps through increased transactions of 6.2%. Our sales outperformance led to strong fixed cost leverage, and we delivered adjusted EPS of 86 cents. We continued our store growth during the quarter, opening 55 new stores across 20 states. Two of these stores, located in Victorville, California and Joplin, Missouri, were among the top 25 all-time grand openings. We supported our new stores with the return of grand opening marketing activities. This first quarter performance reinforces our belief that Five Below, with the right product and value, combined with an incredible store experience, is the destination for our customers, the kid and the kid in all of us. Our mission remains to offer the newest, best products at extreme value to help our customers throughout their life stages to play, live, give, and celebrate. Now on to product. Providing fresh, trend-right, and quality products at amazing value is what we are known for, and what makes us special. In the first quarter, we featured great licensed product for customers to build their own special Easter baskets, and we broadened our Easter candy offering. Our shelves were stocked with spring break must-haves, including boogie boards, beach towels, and a new assortment of on-trend totes. We drove sales by consistently flowing newness, most notably in beauty, style, and novelty food. In toys and games, we remain a key destination for collectibles. Finally, maintaining our in-stock positions in key areas like tech has grown sales and shown that we are the place for cables, chargers, phone cases, and Bluetooth audio. On store experience, we did a much better job wowing our customers compared to last year. The investments we made in our store experience, which began in the second half of last year, including increasing labor and simplifying and improving processes are paying off. Our crew is now in a much better position to assist customers while also ensuring our shelves are stocked with trend right products our customers want and need. We remain committed to our crew and to making the store easier and more fun to shop for our customers. On to marketing. I continue to believe that there's a big opportunity to better connect with our customers, both in-store and digitally, and ultimately increase our brand awareness. On last quarter's call, I mentioned six curtain-up moments to drive customers to our stores, which include the new year, spring break and Easter, summer, then back to school, Halloween, and finally holiday. We need to let our customers know that we're a go-to destination as they celebrate those special moments in life, and we have just started to do that with our marketing. In the first quarter, we highlighted value and invested in creator content for social media with encouraging results. We have exciting plans in place for the remaining Curtain Up moments throughout the year and look forward to sharing our progress. Now, as we look forward, the tariff environment presents additional complexity, and our teams have been working hard and moving swiftly on mitigation plans. Our plans include vendor negotiations, diversification of sourcing, continued investment in new value-packed product, as well as assortment and pricing adjustments with a focus on reducing the number of price points. In a relatively short period, With a heavy lift by the teams, we were able to accelerate the work that was planned for our assortment by quickly sourcing new product in different countries, expanding our vendor base, and simplifying our approach to pricing. Our efforts have already resulted in a reduction in goods sourced from China by about 10 percentage points for the back half of the year. In conjunction with these changes, we are working very closely with our partners optimize our inventory availability and receipt flow for the balance of the year. We remain committed to providing extreme value, quality products for our customers. The teams are working incredibly hard to control the controllables and mitigate the risks that the current global trade environment presents. We are also laser focused on continuing to drive sales through executional excellence. As always, we will act quickly and remain nimble and flexible in our approach as we react to macro news and find solutions to a changing environment. In summary, we're excited to see early signs of success across our core strategies of product, value, and experience. We look forward to building on this progress with an unwavering focus on our core customer and are confident we will continue to provide our customers with amazing value and a fun shopping experience. Now, before I turn it over to Christy to provide more details on her performance, I want to take a moment to discuss the announcement that Christy will be leaving Phi Below for personal reasons. I would like to personally thank Christy for all that she has done during her time here. We're truly grateful for her many contributions and her partnership. We've begun a national search for a new CFO And in the meantime, I'm very thankful that Kemble will take on the additional role of interim CFO. Now on to Christy.