Five Below Inc (FIVE) 2022 Q3 法說會逐字稿

Good morning, and welcome to the Five Below Third Quarter 2022 Earnings Conference Call. (Operator Instructions) Please note that this event is being recorded.

早上好，歡迎來到 2022 年第三季度低於五人的收益電話會議。 （操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to Christiane Pelz, VP of Investor Relations and Treasury. Please go ahead.

我現在想將會議轉交給投資者關係和財政部副總裁 Christiane Pelz。請繼續。

Thank you, Cole. Good afternoon, everyone, and thanks for joining us today for Five Below's Third Quarter 2022 Financial Results Conference Call. On today's call are Joel Anderson, President and Chief Executive Officer; and Ken Bull, Chief Financial Officer and Treasurer. After management has made their formal remarks, we will open the call to questions.

謝謝你，科爾。大家下午好，感謝今天加入我們，參加 Five Below 的 2022 年第三季度財務業績電話會議。參加今天電話會議的有總裁兼首席執行官喬爾·安德森 (Joel Anderson)；和首席財務官兼財務主管 Ken Bull。在管理層發表正式評論後，我們將開始提問。

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.

我需要提醒您，在本次電話會議中發表的某些評論可能構成前瞻性陳述，並且是根據經修訂的 1995 年《私人證券訴訟改革法》的安全港條款並在其含義範圍內作出的。此類前瞻性陳述受到已知和未知的風險和不確定性的影響，這些風險和不確定性可能導致實際結果與此類陳述存在重大差異。這些風險和不確定性在新聞稿和我們提交給美國證券交易委員會的文件中有所描述。

The forward-looking statements made today are as of the date of this call, and we do not undertake any obligation to update our forward-looking statements. 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.

今天作出的前瞻性陳述截至本次電話會議之日，我們不承擔任何更新前瞻性陳述的義務。如果您沒有今天新聞稿的副本，您可以通過訪問我們網站 fivebelow.com 的投資者關係頁面獲得一份。

I will now turn the call over to Joel.

我現在將把電話轉給喬爾。

Thank you, Christiane, and thanks, everyone, for joining us for our third quarter 2022 earnings call. We delivered a third quarter that substantially beat our guidance against a difficult macro environment, especially given the comparison to last year's extremely strong sales. We are playing offense, staying nimble and controlling what we can, all the while keeping our customer promise of delivering value at the center of our decision-making.

謝謝 Christiane，也感謝大家加入我們的 2022 年第三季度財報電話會議。我們交付的第三季度大大超過了我們在艱難的宏觀環境下的指導，特別是考慮到與去年極其強勁的銷售相比。我們正在進攻，保持敏捷並控制我們能做的事情，同時始終將我們的客戶承諾交付價值作為我們決策的中心。

We are also executing on our long-term growth initiatives that underpin our Triple-Double plan, of which store growth is key, and we are pleased that the conversions to our new Five Beyond store format are being met with a very positive customer response. All of this helped drive total sales growth of 6% to $645 million, a comparable sales decrease of 2.7% and earnings per share of $0.29, which were all ahead of our guidance for the third quarter.

我們還在執行支撐我們三雙計劃的長期增長計劃，其中門店增長是關鍵，我們很高興向新的 Five Beyond 門店模式的轉變得到了非常積極的客戶響應。所有這些都推動總銷售額增長 6% 至 6.45 億美元，可比銷售額下降 2.7%，每股收益為 0.29 美元，均高於我們對第三季度的指引。

The sales beat was driven by both ticket and transactions results improving throughout the quarter. We opened 40 new stores across the country in the third quarter, finishing the quarter with 102 stores opened year-to-date. Three of these new stores ranked in the top 25 fall grand openings of all time. And 2 of them were in our new states of North Dakota and South Dakota. We are also very excited to open our third Manhattan location in Times Square. In addition, we have already converted approximately 250 stores this year to the new Five Beyond prototype.

整個季度的機票和交易結果均有所改善，推動了銷售增長。第三季度，我們在全國開設了 40 家新店，本季度末，年初至今新開了 102 家店。其中 3 家新店名列有史以來秋季盛大開業的前 25 名。其中 2 個在我們的新州北達科他州和南達科他州。我們也很高興在時代廣場開設我們在曼哈頓的第三家分店。此外，我們今年已經將大約 250 家商店轉換為新的 Five Beyond 原型。

We are very pleased with the pace and execution of this rollout as well as the customer response, which is driving higher sales and traffic to these stores. This past year, we continue to focus on our strategic initiatives of product, experience and supply chain, which were key to our performance and were important enablers of our past long-term targets.

我們對此次推出的速度和執行以及客戶的響應感到非常滿意，這推動了這些商店的銷售額和客流量。在過去的一年裡，我們繼續專注於產品、體驗和供應鏈的戰略舉措，這些是我們業績的關鍵，也是我們過去長期目標的重要推動力。

Next year, we will outline our strategic pillars that will enable our Triple-Double goals. On product, the trends we mentioned last quarter continued with our version of consumables or needs-based products resonating with customers. The Candy world once again outperformed, featuring novelty candy like slime liquors, snacks from great brands like Hershey and Roche as well as our [Salty] business featuring the one-chip challenge and Takis.

明年，我們將概述實現三雙目標的戰略支柱。在產品方面，我們上個季度提到的趨勢繼續與我們的消耗品版本或基於需求的產品引起客戶共鳴。糖果世界再次表現出色，包括史萊姆酒等新奇糖果、好時和羅氏等知名品牌的零食，以及我們的 [Salty] 業務，其中包括單芯片挑戰和 Takis。

In games and toys, our squish model products remain popular, we connected with our customers with Squish Sunday events and recently launched our exclusive Five Below only collection of Squish models. Newer trends like Anime, Funko and Hello Kitty grew, and we sourced more licensed products, including items such as Disney's, Lilo & Stitch and Marble action figures, all at extreme value.

在遊戲和玩具中，我們的 squish 模型產品仍然很受歡迎，我們通過 Squish Sunday 活動與客戶聯繫，最近推出了我們獨家的 Five Below 系列 Squish 模型。 Anime、Funko 和 Hello Kitty 等新趨勢在增長，我們採購了更多授權產品，包括 Disney、Lilo & Stitch 和 Marble 可動人偶等產品，所有產品都具有極高的價值。

In addition, Halloween was more normalized as tricker treating and other Halloween rituals recovered from the pandemic impacted 2020 and 2021 years. We were pleased with our performance and our seasonal offerings were well received. Five Beyond, as I mentioned earlier, continues to be a growth driver for us with more stores offering the full assortment in the back of the store. We've added about 200 items to the converted Five Beyond stores.

此外，萬聖節更加正常化，因為 2020 年和 2021 年從大流行中恢復了招待和其他萬聖節儀式。我們對我們的表現很滿意，我們的季節性產品也很受歡迎。正如我之前提到的，Five Beyond 繼續成為我們的增長動力，更多商店在商店後面提供全系列產品。我們已將大約 200 件商品添加到改造後的 Five Beyond 商店。

Finally, I'd like to add that we took advantage of closeout opportunities and onetime special buys in the marketplace. And now have additional extreme values across products of many categories. Our goal, especially this holiday inflation-induced season is to drive even more value for our customers, and we will continue to selectively pursue opportunistic buys that will drive traffic and attract new customers to Five Below.

最後，我想補充一點，我們利用了市場上的清倉機會和一次性特價商品。現在，許多類別的產品都有額外的極值。我們的目標，尤其是這個假期通脹引發的季節，是為我們的客戶帶來更多價值，我們將繼續有選擇地尋求機會性購買，以增加流量並吸引新客戶到 Five Below。

As it relates to our strategic initiative of experience, we are focused on connecting with our customers and delivering an even better shopping experience for them. We already spoke about the successful rollout of the latest prototype featuring the Five Beyond store within a store in the back of the store, which includes the reimagined tech and room roles.

由於這與我們的體驗戰略計劃相關，我們專注於與客戶建立聯繫並為他們提供更好的購物體驗。我們已經談到了以 Five Beyond 商店為特色的最新原型在商店後面的商店內成功推出，其中包括重新構想的技術和房間角色。

We continue to see customers who purchased Five Beyond products spend about twice as much as those who did not, which bodes well for continued increases in store productivity. With approximately 20% of our chain in the new Five Beyond format that we unveiled earlier this year, we are on track and marching toward our goal for over 80% of the chain to be in this format by 2025. With respect to marketing, for the third quarter, we invested heavily in digital, specifically in paid search and social media.

我們繼續看到購買 Five Beyond 產品的客戶的消費是未購買產品的客戶的兩倍左右，這預示著商店生產力的持續提高。我們大約有 20% 的連鎖店採用我們今年早些時候推出的新的 Five Beyond 格式，我們正在朝著我們的目標邁進，即到 2025 年超過 80% 的連鎖店採用這種格式。關於營銷，對於第三季度，我們在數字領域投入了大量資金，特別是付費搜索和社交媒體。

We increased our marketing spend year-over-year, focusing more on the second half of the quarter leading into the key holiday selling season. We tested various strategies and believe our efforts were effective in driving sales. Our marketing and visual design teams did a great job communicating our value message to customers, whether digitally or in store.

我們比去年同期增加了營銷支出，更多地關注進入關鍵假日銷售季節的本季度下半年。我們測試了各種策略，相信我們的努力在推動銷售方面是有效的。我們的營銷和視覺設計團隊在向客戶傳達我們的價值信息方面做得非常出色，無論是通過數字方式還是在店內。

In addition, with increasing knowledge about our customers, gained through tokenization, we are leveraging data to target both new and existing customers more effectively. For e-commerce, we enhanced our offering by rolling out Buy Online, Pick Up in Store, chain-wide in September.

此外，隨著通過標記化獲得對客戶的更多了解，我們正在利用數據更有效地瞄準新客戶和現有客戶。對於電子商務，我們於 9 月在全連鎖店推出在線購買、店內提貨服務，從而增強了我們的服務。

The initial results are promising, and we look forward to our customers discovering the convenience that BOPIS orders during this busy holiday season. With respect to supply chain, we are proactively managing our operations and navigating dynamic conditions. We continue to look for ways to control our destiny. As an example, we strategically accelerated inventory receipts to ensure a great in-stock position for the holiday season. We remain nimble in this ever-changing environment, and I am extremely pleased with the positive results the team has delivered.

初步結果令人鼓舞，我們期待我們的客戶在這個繁忙的假期期間發現 BOPIS 訂購的便利。在供應鏈方面，我們正在積極管理我們的運營並駕馭動態條件。我們繼續尋找方法來控制我們的命運。例如，我們戰略性地加快了庫存收貨速度，以確保節日季有充足的庫存。我們在這個不斷變化的環境中保持敏捷，我對團隊取得的積極成果感到非常滿意。

Regarding our distribution infrastructure. We completed our Five node network with the summer opening of the Indianapolis Ship Center. We now have the capability to reach approximately 90% of our stores within 2 days, and the network is expected to provide efficiencies and keep our stores well stocked.

關於我們的分銷基礎設施。隨著印第安納波利斯船舶中心夏季開放，我們完成了我們的五節點網絡。我們現在有能力在 2 天內到達大約 90% 的商店，並且該網絡有望提高效率並使我們的商店庫存充足。

Peter Town, New Jersey, our first large ship center has been fully built out with the ability now to service approximately 500 stores. The other 4 ship centers will be expanded over the coming years to support our continued growth.

新澤西州彼得鎮，我們的第一個大型船舶中心已經完全建成，現在能夠為大約 500 家商店提供服務。其他 4 個船舶中心將在未來幾年擴大，以支持我們的持續增長。

Now on to the all-important holiday season. We are pleased with the start of Q4, including Black Friday weekend. Our stores are stocked and ready with an amazing assortment of value products that promises to delight our customers. From branded games and toys to pet beds, and from holiday decor and licensed teas to Bluetooth speakers, we have something for everyone to complete their shopping list.

現在進入最重要的假期。我們對第四季度的開始感到滿意，包括黑色星期五週末。我們的商店備有各種令人驚嘆的超值產品，這些產品有望讓我們的客戶滿意。從品牌遊戲和玩具到寵物床，從節日裝飾和特許茶葉到藍牙揚聲器，我們為每個人準備了一些東西來完成他們的購物清單。

In addition to our Five Below stocking stuffers and gifts, we're also excited for Five Beyond to provide new and extreme value products in different categories, which further reinforces our position as a must-stop holiday gifting destination. For example, this holiday season, we are featuring a folding light-up scooter with LED wheels for only $20.

除了我們的 Five Below 聖誕禮物和禮物，我們也很高興 Five Beyond 能夠提供不同類別的新的和超值的產品，這進一步鞏固了我們作為不可錯過的節日禮物目的地的地位。例如，在這個假日季節，我們推出了一款僅售 20 美元的帶 LED 輪子的折疊式發光滑板車。

We are also really excited to have sourced Kylie and Kendall crossover bags for only $5, exclusive to Five Below. And to highlight these amazing values, earlier this month, we kicked off our save the holidays marketing campaign, utilizing social media, paid search, TV and key partners like Kelly Clarkson, to attract new and existing audiences. In our stores, we've hired thousands of associates to keep our shelves filled and help customers with their holiday shopping needs.

我們也很高興能以 5 美元的價格採購 Kylie 和 Kendall 跨界包，專供 Five Below。為了突出這些驚人的價值，本月早些時候，我們啟動了拯救假期營銷活動，利用社交媒體、付費搜索、電視和 Kelly Clarkson 等主要合作夥伴來吸引新的和現有的觀眾。在我們的商店中，我們僱傭了數千名員工來保持貨架上的貨品並幫助顧客滿足他們的假日購物需求。

We also plan to further elevate our customers' journey with approximately 70% of our stores offering assisted checkout, which improves throughput and the customer experience during the busy holiday shopping season. We can't wait to see everyone in our stores and online at fivebelow.com.

我們還計劃通過大約 70% 的商店提供輔助結賬，進一步提升客戶的旅程，從而在繁忙的假日購物季提高吞吐量和客戶體驗。我們迫不及待地想在我們的商店和 fivebelow.com 上看到每個人。

So in summary, we made great progress on several initiatives in the third quarter and are in a great position for the fourth quarter. We believe with the steps taken, including accelerating inventory receipts, expanding our value assortment, increasing marketing, adding BOPIS and growing the number of self-checkouts in stores, we are well positioned for our customers as they adjust to an inflation holiday season and look even more for value.

因此，總而言之，我們在第三季度的幾項舉措上取得了很大進展，並且在第四季度處於有利地位。我們相信，通過採取措施，包括加速庫存收貨、擴大我們的價值分類、增加營銷、增加 BOPIS 和增加商店自助結賬的數量，我們為客戶做好了準備，因為他們正在適應通貨膨脹的假期，並期待更有價值。

Last quarter, we said that Five Below becomes a needs-based retailer during the holiday season and we are beginning to see that play out with improved transactions. We offer the extreme value our customers need to help alleviate macro pressures while providing a fun shopping experience to let go and have fun. Our customers know they can count on Five Below for amazing, affordable gifts and stocking stuffers to celebrate the season and we won't disappoint.

上個季度，我們說 Five Below 在假期期間成為一家以需求為基礎的零售商，我們開始看到交易有所改善。我們提供客戶所需的極端價值，以幫助減輕宏觀壓力，同時提供有趣的購物體驗，讓他們盡情享受。我們的客戶知道，他們可以依靠 Five Below 購買精美、實惠的禮物和聖誕禮物來慶祝這個季節，我們不會讓您失望的。

With that, I'll turn it over to Ken to review the financials in more detail. Ken?

有了這個，我會把它交給 Ken 來更詳細地審查財務狀況。肯？

Thanks, Joel, and good afternoon, everyone. I will begin my remarks with a review of our third quarter results and then provide guidance for the fourth quarter and the full year. As Joel said, we were pleased to exceed the third quarter guidance we provided. Our sales for the third quarter of 2022 increased 6.2% to $645 million from $607.6 million reported in the third quarter of 2021.

謝謝，喬爾，大家下午好。我將首先回顧我們的第三季度業績，然後為第四季度和全年提供指導。正如喬爾所說，我們很高興超過我們提供的第三季度指導。我們 2022 年第三季度的銷售額從 2021 年第三季度的 6.076 億美元增長 6.2% 至 6.45 億美元。

On a 3-year compound annual growth rate basis, sales growth for the third quarter was approximately 20%. Comparable sales decreased by 2.7% with a comp ticket decrease of 1.8% and a comp transaction decrease of 0.9%. Our average ticket remains strong, increasing over 20% in the third quarter as compared to the corresponding pre-pandemic period in 2019, which is in line with the results we have seen since we reopened stores in mid-2020.

按 3 年復合年增長率計算，第三季度的銷售額增長約為 20%。可比銷售額下降了 2.7%，其中比較票下降了 1.8%，比較交易下降了 0.9%。我們的平均票價仍然強勁，與 2019 年大流行前的相應時期相比，第三季度增長了 20% 以上，這與我們自 2020 年年中重新開店以來所看到的結果一致。

We were pleased that our comps on a 1-year basis and a 3-year geometric stack basis increased post- August with improvements in both transaction and ticket. We opened 40 new stores across 20 states in the third quarter compared to 52 new stores opened in the third quarter last year. We ended the quarter with 1,292 stores, an increase of 119 stores or approximately 10% versus 1,173 stores at the end of the third quarter last year.

我們很高興我們在 1 年期和 3 年期幾何堆棧基礎上的補償在 8 月後有所增加，交易和門票都有所改善。我們在第三季度在 20 個州開設了 40 家新店，而去年第三季度開設了 52 家新店。我們在本季度末擁有 1,292 家門店，與去年第三季度末的 1,173 家門店相比，增加了 119 家門店或約 10%。

Gross profit for the third quarter of 2022 increased 2.7% to $207.8 million versus $202.4 million in the third quarter of 2021. Gross margin decreased by approximately 110 basis points to 32.2%, driven primarily by occupancy deleverage on the negative comp. As a percentage of sales, SG&A for the third quarter of 2022 increased approximately 270 basis points to 29%.

2022 年第三季度的毛利潤增長 2.7% 至 2.078 億美元，而 2021 年第三季度為 2.024 億美元。毛利率下降約 110 個基點至 32.2%，這主要是由於入住率下降導致的。作為銷售額的百分比，2022 年第三季度的 SG&A 增加了約 270 個基點，達到 29%。

SG&A expenses as a percent of sales were higher than last year driven primarily by fixed cost deleverage, higher store expenses and increased marketing expense, all offset in part by cost management strategies initiated this year and lower incentive compensation. As a result, operating income decreased 50.7% to $20.9 million versus $42.4 million in the third quarter last year, with operating margin deleveraging year-over-year by approximately 375 basis points.

SG&A 費用佔銷售額的百分比高於去年，這主要是由於固定成本去槓桿化、更高的商店費用和增加的營銷費用，所有這些都在一定程度上被今年啟動的成本管理戰略和較低的激勵薪酬所抵消。因此，營業收入從去年第三季度的 4240 萬美元下降 50.7% 至 2090 萬美元，營業利潤率同比下降約 375 個基點。

These results were better than our expectations due primarily to the sales beat. Our effective tax rate for the third quarter of 2022 was 24.6% compared to 24% in the third quarter of 2021. Net income for the third quarter of 2022 was $16.1 million versus net income of $24.2 million last year.

這些結果好於我們的預期，主要是由於銷售業績好於預期。我們 2022 年第三季度的有效稅率為 24.6%，而 2021 年第三季度為 24%。2022 年第三季度的淨收入為 1610 萬美元，而去年的淨收入為 2420 萬美元。

Earnings per diluted share for the third quarter was $0.29 compared to last year's earnings per diluted share of $0.43. We ended the third quarter with $117 million in cash, cash equivalents and investments and no debt, including nothing outstanding on our $225 million line of credit.

第三季度每股攤薄收益為 0.29 美元，而去年同期為 0.43 美元。第三季度結束時，我們擁有 1.17 億美元的現金、現金等價物和投資，沒有債務，包括我們 2.25 億美元的信貸額度中沒有任何未償債務。

Inventory at the end of the third quarter was $702 million as compared to $521 million at the end of the third quarter last year. In line with our expectations, average inventory on a per store basis increased approximately 22% versus the third quarter last year.

第三季度末的庫存為 7.02 億美元，而去年第三季度末的庫存為 5.21 億美元。與我們的預期相符，與去年第三季度相比，每家門店的平均庫存增加了約 22%。

Approximately half of this increase came from unit growth as we accelerated inventory receipts to ensure better in-stock positions for the holiday period. We continue to expect the growth in average year-over-year inventory per store to moderate significantly by the end of the fourth quarter.

這一增長的大約一半來自單位增長，因為我們加快了庫存收貨速度，以確保假期期間有更好的庫存。我們繼續預計，到第四季度末，每家商店的平均庫存同比增長將顯著放緩。

Now on to guidance for the fourth quarter and fiscal year. We are pleased with the start to the fourth quarter, including Black Friday weekend results. We expect fourth quarter sales to be in a range of $1,085 million to $1,110 million based on opening approximately 48 new stores in the quarter, with comparable sales in the range of negative 1% to positive 1% versus last year's fourth quarter comparable sales increase of $0.034.

現在是第四季度和財政年度的指導。我們對第四季度的開始感到滿意，包括黑色星期五週末的結果。我們預計第四季度銷售額將在 10.85 億美元至 11.1 億美元之間，基於本季度開設約 48 家新店，與去年第四季度的可比銷售額增長相比，可比銷售額在負 1% 至正 1% 之間。 0.034 美元。

As Joel said, we feel great about our holiday assortment and expect to benefit from a better in-stock position in Q4, more targeted and effective marketing and an expanded Five Beyond assortment in more stores. At the midpoint of our guidance, we expect year-over-year operating margin improvement in the fourth quarter of approximately 150 basis points, driven by leverage in both gross margin and SG&A expenses.

正如 Joel 所說，我們對我們的假日商品分類感覺很好，並期望從第四季度更好的庫存狀況、更有針對性和更有效的營銷以及更多商店中擴大的 Five Beyond 分類中受益。在我們指引的中點，我們預計第四季度營業利潤率同比提高約 150 個基點，這主要受毛利率和 SG&A 費用的影響。

Lower incentive compensation and additional cost management strategies are expected to more than offset deleverage on fixed costs and higher than originally planned marketing spend. Our effective tax rate for the fourth quarter is planned at approximately 25%, which excludes the impact of share-based accounting for any share repurchases.

較低的激勵薪酬和額外的成本管理策略預計將足以抵消固定成本的去槓桿化和高於原計劃的營銷支出。我們計劃第四季度的實際稅率約為 25%，這不包括基於股份的會計對任何股份回購的影響。

Net income is expected to be in the range of $164 million to $173 million with diluted EPS expected to be in the range of $2.93 to $3.09. For the full year, we expect sales in the range of $3,038 million to $3,063 million or an increase of 6.7% to 7.6% versus fiscal year 2021. We expect comparable sales in the range of negative 3% to negative 2%, and EPS in the range of $4.55 to $4.71, which is an 8.1% to 4.8% reduction versus last year. These full year projections assume opening 150 new stores and completing approximately 250 conversions to the new Five Beyond store format.

淨收入預計在 1.64 億美元至 1.73 億美元之間，攤薄後每股收益預計在 2.93 美元至 3.09 美元之間。對於全年，我們預計銷售額在 30.38 億美元至 30.63 億美元之間，與 2021 財年相比增長 6.7% 至 7.6%。我們預計可比銷售額在負 3% 至負 2% 之間，每股收益在4.55 美元至 4.71 美元的範圍內，與去年相比減少了 8.1% 至 4.8%。這些全年預測假設開設 150 家新店，並完成大約 250 家向新的 Five Beyond 商店格式的轉換。

For fiscal 2022, we are planning to spend approximately $235 million in gross capital expenditures, excluding the impact of tenant allowances. This reflects the opening of our new ship center in Indianapolis, opening new stores and executing conversions and investing in systems and infrastructure.

在 2022 財年，我們計劃支出約 2.35 億美元的總資本支出，不包括租戶津貼的影響。這反映了我們在印第安納波利斯開設新的船舶中心、開設新店和執行轉換以及對系統和基礎設施的投資。

In conclusion, we had a better-than-expected third quarter and are off to a good start for the fourth quarter. It remains a dynamic economic environment. However, Five Below is a resilient retailer. Our teams continue to move quickly to adjust to changing customer preferences, and I want to thank them for their ongoing commitment and dedication.

總之，我們第三季度的表現好於預期，第四季度開局良好。它仍然是一個充滿活力的經濟環境。然而，Five Below 是一家有彈性的零售商。我們的團隊繼續快速行動以適應不斷變化的客戶偏好，我要感謝他們一直以來的承諾和奉獻。

The combination of our long runway for growth, industry-leading new store economic model and strong balance sheet, combined with disciplined cost management sets us apart and positions us to weather economic uncertainty, all while continuing to deliver on our strategic priorities to capitalize on the significant growth opportunity that lies ahead.

我們的長跑道、行業領先的新店經濟模式和強大的資產負債表，再加上嚴格的成本管理，使我們脫穎而出，使我們能夠抵禦經濟不確定性，同時繼續實現我們的戰略重點，以利用擺在面前的重要增長機會。

With that, I'll turn it back over to the operator to begin Q&A. Operator?

有了這個，我會把它轉回給接線員開始問答。操作員？

(Operator Instructions)

（操作員說明）

Today, we'll come from Kathy Boss with JPMorgan.

今天，我們將來自摩根大通的 Kathy Boss。

Great. Congrats on a great quarter. Joel, so a couple of things. What do you review the inflection in business that you've seen since August. Could you elaborate on November? And is it fair to say that you're embedding a level of potential conservatism in the 4Q guide? And then just anything you see today that prevents you from returning to the components of the Triple-Double plan as we look to next year.

偉大的。祝賀一個偉大的季度。喬爾，有幾件事。您如何看待自 8 月以來您所看到的業務拐點？ 11月能詳細點嗎？可以說您在 4Q 指南中嵌入了一定程度的潛在保守主義嗎？然後就是你今天看到的一切，阻止你回到我們期待明年的三雙計劃的組成部分。

Yes. Thanks, Matt. Obviously, based on our guide where the quarter end, the quarter improved throughout September and October, I think it's largely a combination of the factors I outlined in my prepared remarks, which specifically were a combination of what we've done around the Triple-Double has really helped the improvement in transactions.

是的。謝謝，馬特。顯然，根據我們在季度末的指南，該季度在整個 9 月和 10 月有所改善，我認為這在很大程度上是我在準備好的發言中概述的因素的組合，特別是我們圍繞 Triple- Double 確實幫助了交易的改善。

And we've always said as we get closer to holiday, we become a needs-based retailer, and we've clearly seen some of that begin to happen. And then finally, we increased marketing. And so those are all things on our side of it. And then it's not lost on us that the consumer CPI has gone down throughout the quarter, and that probably certainly helped customers as well.

我們總是說，隨著假期的臨近，我們將成為一家以需求為基礎的零售商，而且我們已經清楚地看到其中一些開始發生。最後，我們增加了營銷。所以這些都是我們這邊的事情。然後我們並沒有忘記消費者 CPI 在整個季度都在下降，這肯定也對客戶有所幫助。

And that's kind of how we see Q3 playing out. As far as elaborating on fourth quarter, conservatism is a tough word to confirm or deny in the sense that as you always know, Matt, Q4 is a different quarter than the rest of the quarters. And we clearly have 2/3 of the quarter still in front of us. So I think we said in our remarks, we're really off to a very solid start to the quarter. It's in line with our forecast, and we see no reason for that to stop. But we also have to recognize that it's a pretty dynamic environment and the customer hasn't dealt with inflation like this before. But look, all the stuff we put in place seems to be resonating, and we expect that to work throughout December. Thanks, Matt.

這就是我們如何看待第三季度的結果。就第四季度的闡述而言，保守主義是一個很難確認或否認的詞，因為你一直都知道，馬特，第四季度與其他季度不同。我們顯然還有 2/3 的季度在我們面前。所以我認為我們在評論中說過，我們本季度的開局確實非常穩固。這符合我們的預測，我們認為沒有理由停止。但我們也必須認識到，這是一個非常動態的環境，客戶以前從未像這樣處理過通貨膨脹。但是看，我們實施的所有措施似乎都引起了共鳴，我們預計這將在整個 12 月發揮作用。謝謝，馬特。

Our next question will come from Simeon Gutman with Morgan Stanley.

我們的下一個問題將來自摩根士丹利的 Simeon Gutman。

Happy holidays. Joel, can you talk about the product pipeline heading into '23. I know you won't give '23 guidance, and that's not the point. But anything that's different? And then is there any products that are not already set for the holiday that come into your assortment in the next -- I'm assuming not, but anything around that and then to '23?

節日快樂。喬爾，你能談談進入 23 年的產品管道嗎？我知道你不會給出 23 年的指導，這不是重點。但是有什麼不同嗎？然後是否有任何尚未為假期設置的產品在下一個進入您的分類 - 我假設沒有，但圍繞那個然後到 23 年的任何產品？

Yes. Look, as far as the assortment for Q4, I would -- you'll see a few new stuff still floating in for Five Beyond. I think that's a very dynamic line that we expect stuff to go in and out. So you'll continue to see some newness and wow in there.

是的。看，就第四季度的分類而言，我會 - 你會看到 Five Beyond 仍然有一些新東西。我認為這是一條非常動態的路線，我們希望東西進進出出。所以你會繼續看到一些新奇的東西，並在那裡驚嘆不已。

But in terms of the product line, I mean, some of the stuff I called out on my prepared remarks, like the Kylie and Kendall crossover bags. I mean that's just a great example of the merchants being out there, being trend right getting exclusive to us.

但就產品線而言，我的意思是，我在準備好的評論中提到的一些東西，比如 Kylie 和 Kendall 跨界包。我的意思是，這只是一個很好的例子，說明商家在那裡，成為我們獨有的潮流。

And that item is off to a great start, and that will carry into next year. And then I think the big -- we want to forecast into '23, I think the big change we've seen licenses haven't been relevant for the last 3 years, largely because movies haven't happened and licenses tend to come out of movies. So the emergence of licenses here in the fourth quarter is a good sign that will probably continue into '23 as well. But that's kind of a quick overview on product and as we think about going into '23. Thanks, Simeon.

該項目開局良好，並將延續到明年。然後我認為大 - 我們想預測到 23 年，我認為我們看到的重大變化在過去 3 年裡與許可無關，主要是因為電影還沒有發生，許可往往會出來的電影。因此，第四季度許可證的出現是一個好兆頭，可能還會持續到 23 年。但這是對產品和我們考慮進入 23 年的快速概述。謝謝，西蒙。

Our next question will come from John Heinbockel with Guggenheim.

我們的下一個問題將來自古根海姆的約翰海因博克爾。

If your thoughts, right, where we are in Five Beyond now, right, in terms of price points, I think you've got more $25 items than you've ever had. But price points worlds, and I know you've always -- Michael has always challenged the merchants, right?

如果你的想法，對，我們現在在 Five Beyond 中的位置，就價格點而言，我認為你擁有的 25 美元商品比以往任何時候都多。但價格點世界，我知道你一直 - 邁克爾一直挑戰商家，對吧？

We need dollar items as much as we need $5, that discipline on Five Beyond, right? Is that we need $10 items as much as we need $20. What's your thought on that today?

我們需要美元物品就像我們需要 5 美元一樣多，這是 Five Beyond 的紀律，對吧？是我們需要 10 美元的商品和需要 20 美元的商品一樣多嗎？你今天對此有何看法？

Yes. Good question, John. And what I would say to you on that and honestly, for everyone on the call, we're still Five Below. And more than ever this year, we really focused on that, $1, $2 price points and really try to screen value in the stores. And at the same time, strategically, we are very excited about Five Beyond and what that allows us to do to not only be your stocking stuff or headquarters during holiday, but also be the main gift, and we've landed on a great platform, obviously called Five Beyond.

是的。好問題，約翰。老實說，對於通話中的每個人，我要告訴你的是，我們仍然低於五級。今年比以往任何時候都更加關注 1 美元、2 美元的價格點，並真正嘗試在商店中篩選價值。同時，在戰略上，我們對 Five Beyond 感到非常興奮，這讓我們不僅可以成為您在假期期間的庫存或總部，而且還可以成為主要禮物，我們已經登陸了一個很棒的平台，顯然叫五超越。

But what you're going to see us continue to emphasize and build upon is the bifurcation of the two. And it is not our intent in non-Five Beyond stores to grow that assortment. You will not see that assortment grow in the non-Five Beyond stores. We may still carry a 8-foot section in the front. But whether you're talking about Five Below or Five Beyond, the consistent message that the merchants will deliver is value.

但是你將看到我們繼續強調和建立的是兩者的分歧。我們並不打算在非 Five Beyond 商店中增加這種分類。您不會在非 Five Beyond 商店中看到該品種的增長。我們可能仍然在前面攜帶一個 8 英尺的部分。但是，無論您是在談論“低於五個”還是“超過五個”，商家傳達的一致信息都是有價值的。

I think that's more important than the actual price. And you're right, John, we have more $25 items than we did last year. For now, I think that's the high end of where we'll go. And we've got too many opportunities to have to go any higher than that right now, but you'll see that continue to expand in the Five Beyond stores.

我認為這比實際價格更重要。你是對的，約翰，我們的 25 美元商品比去年多了。現在，我認為這是我們要去的地方的高端。而且我們現在有太多機會必須比這更高，但你會看到它在 Five Beyond 商店中繼續擴大。

And Michael and the team will do what they do. We'll start -- as we said at the Investor Day, we're moving away from items on the shelf to a store within a store and you'll start to see worlds emerge, you'll start to see categories emerge. And I'm talking about Five Beyond for the second here, John. But hopefully, that gives you some sense of the difference between Five Below and Five Beyond, and yet at the same time, it's about delivering value. Thanks, John.

邁克爾和他的團隊會做他們所做的。我們將開始——正如我們在投資者日所說的那樣，我們正在從貨架上的物品轉移到商店中的商店，你會開始看到世界的出現，你會開始看到類別的出現。約翰，我在這裡談論的是第二個超越五個。但希望這能讓您對“低於五個”和“超過五個”之間的區別有所了解，但與此同時，它與交付價值有關。謝謝，約翰。

And our next question will come from Scot Ciccarelli with Truist.

我們的下一個問題將來自 Scot Ciccarelli 和 Truist。

I have a question on store growth. I think it's again going to be a bit lower than kind of previously anticipated. So I guess the questions are, are there still headwinds to the opening cadence we should be thoughtful about, especially as we look towards the '23 unit growth opportunity?

我有一個關於商店增長的問題。我認為它會再次低於之前的預期。所以我想問題是，我們應該考慮的開放節奏是否仍然存在不利因素，尤其是當我們期待 23 年的單位增長機會時？

Yes. It's a good question, John (sic) [Scot]. I mean clearly, coming into '22 here, the headwinds persisted over -- coming out of the pandemic. Even the ratio of stores first half to second half is skewed much later to the second half year in '22. And of course, that rolls over a little bit into '23. But look, we're still on track for the long-term Triple-Double goals. I think we said 1,000 stores over 4 years. If you take the slow start in '22 here, hey, does that you end up missing that by 5% or something. It's still directionally 1,000 stores, and that's only because of the start here to '22. We are gaining momentum going into '23 and expect that to continue to grow.

是的。這是個好問題，John (sic) [Scot]。我的意思是，很明顯，進入 22 年以來，逆風持續存在——從大流行病中走出來。甚至上半年與下半年的門店比例也偏向 22 年下半年。當然，這會延續到 23 年。但是你看，我們仍在朝著長期的三雙目標邁進。我想我們說的是 4 年內有 1,000 家商店。如果你在 22 年在這裡開始緩慢，嘿，你最終會錯過 5% 左右的東西嗎？它仍然是定向 1,000 家商店，這只是因為從這裡開始到 22 年。我們正在獲得進入 23 年的勢頭，並希望這種勢頭繼續增長。

But I think the majority of the headwinds are behind us. And I hate to say it, Scot. I think for the first time in 3 years, we're going to see some retail displacement coming out of the holidays. That will be a good thing for us as we pick up more sites as we expand our growth. But that hopefully gives you some outlook on it. Thanks, Scot.

但我認為大部分不利因素已經過去。我討厭這麼說，斯科特。我認為這是 3 年來的第一次，我們將看到一些零售業在假期結束後被取代。這對我們來說是一件好事，因為隨著我們擴大增長，我們會選擇更多的網站。但這希望能讓你對它有一些看法。謝謝，蘇格蘭人。

And our next question will come from Brian Nagel with Oppenheimer.

我們的下一個問題將來自 Brian Nagel 和 Oppenheimer。

Congrats on this quarter. So my question, Joel, you mentioned -- you mentioned in your prepared comments, the opportunistic purchases. So the question I have is maybe just elaborate further on that. Is this something -- you've always -- you've done this in the past. This is a bigger effort now just given some of dislocations. And the product that you're buying opportunistically, is it more of what the same in Five Below? Or do you have products that could be unique this year?

恭喜這個季度。所以我的問題，喬爾，你提到了——你在準備好的評論中提到了機會主義購買。所以我的問題可能只是進一步闡述。這是不是——你一直——你過去做過這件事。現在只是考慮到一些錯位，這是一個更大的努力。還有你機會主義購買的產品，它是否與《五人以下》中的內容更相似？或者您有今年可能獨一無二的產品嗎？

Yes. I think that why it was important to get that included, Brian, in my prepared remarks is that, honestly, for the last couple of years, there hasn't been a lot of closeout opportunities, onetime opportunistic buys. And I think it's important to note, though, it's still relatively low single digits of our overall purchases. But you walk in our stores, you'll see a big selection of Funko. Our 12-inch Marble action figures, Uno, things like that are a combination of really great brands and licenses and then incredible value that we brought to the stores.

是的。我認為為什麼在我準備好的發言中將其包括在內很重要，老實說，在過去的幾年裡，沒有太多的平倉機會，一次機會主義的購買。不過，我認為值得注意的是，它仍然是我們整體購買量中相對較低的個位數。但是你走進我們的商店，你會看到大量的 Funko 產品。我們的 12 英寸 Marble 可動人偶 Uno 之類的東西是真正偉大的品牌和許可的結合，然後是我們為商店帶來的不可思議的價值。

So I think it's, look, it's something that's been in our DNA for quite some time, but I needed to remind everybody that's kind of back in our playbook, and it hasn't been there for the last couple of years.

所以我認為，看，它已經在我們的 DNA 中存在了很長一段時間，但我需要提醒大家，這有點回到我們的劇本中，而且在過去幾年裡還沒有出現過。

And our next question will come from Paul Lejuez with Citi.

我們的下一個問題將來自花旗的 Paul Lejuez。

Curious, if you can share what you're seeing in terms of the Five Beyond prototype comp performance versus the rest of the chain? And any detail that you might be able to give in terms of the traffic or to get -- that you see in those stores versus the non-Five Beyond stores?

很好奇，您是否可以分享您在 Five Beyond 原型 comp 性能方面與其他鏈條相比所看到的？您可以提供有關流量或獲得的任何詳細信息 - 您在這些商店中看到的與非 Five Beyond 商店相比？

Paul, it's a great question. It kind of alludes a little bit to what Matt asked about improvements through the Q3 quarter. And at the same time, I'm not trying to dodge your answer. And while we are seeing improvements in both, it's really early for us to kind of give you a definitive statements on that because the overwhelming majority of those happened in Q3, which is -- again, it was an input into why sales improved throughout the quarter.

保羅，這是一個很好的問題。這有點暗示了 Matt 問的關於第三季度的改進。同時，我並不是要迴避你的回答。雖然我們在這兩個方面都看到了改進，但我們現在就給你一個明確的聲明還為時過早，因為絕大多數這些發生在第三季度，這再次說明了為什麼銷售在整個季度都有所改善四分之一。

And I think we really kind of need to watch how Q4 goes. But what I'll tell you and remind everybody at our Investor Day, we expected the first 4, full year post remodel to run in plus mid-single digits. And we haven't seen any signs that it's -- they're not going to perform at kind of that level. But at the same time, we want to kind of see more real data. We got a large subset of stores now, 250, and we'll really watch those through the quarter. But I would stick with the mid-single digits, which is what we laid out at Investor Day. Thanks, Paul.

而且我認為我們真的需要關注第四季度的進展情況。但我會告訴你並在我們的投資者日提醒大家，我們預計前 4 年，全年改造後的運行將超過中等個位數。而且我們還沒有看到任何跡象表明它 - 他們不會在那種水平上表現。但與此同時，我們希望看到更多真實數據。我們現在有很大一部分商店，250 家，我們將在本季度真正關注這些商店。但我會堅持使用中間個位數，這是我們在投資者日制定的。謝謝，保羅。

And our next question will come from Edward Kelly with Wells Fargo.

我們的下一個問題將來自富國銀行的愛德華凱利。

So there's been a lot of talk about heavy promotions this holiday period, especially in categories like toys, can you just maybe talk about what your Q4 mix is in that category and how you think you're set up to compete? And then just a follow up on one thing you talked about earlier on the closeout business. Just maybe a little color on what you're seeing there in terms of the opportunity. Could you maybe size it and the impact that could have in Q4 as well?

因此，這個假期期間有很多關於大幅促銷的討論，尤其是在玩具等類別中，你能談談你的第四季度在該類別中的組合是什麼以及你認為你如何準備競爭嗎？然後只是跟進你之前談到的關於收尾業務的一件事。就機會而言，您在那裡看到的可能只是一點顏色。您能否確定它的大小以及它可能對第四季度產生的影響？

Yes. Ed, the toy category for us, holiday is in kind of the high teens range. And I think it's -- look, I know the industry is talking a lot about heavy promotions, over buys. We -- that really hasn't impacted us. We also don't tend to play in the traditional toy lineup that everybody is talking about. Squish model is in the toy -- in our toy world. And that's very different than the plastic toys that I think a lot of people are referencing. And I don't expect us to deviate too much from the high teens in terms of the Q4 performance in toys. I don't know, Ken, anything to add on that?

是的。 Ed，我們的玩具類別，假期屬於青少年範圍。而且我認為這是 - 看，我知道這個行業正在談論大量促銷，而不是購買。我們 - 這真的沒有影響我們。我們也不傾向於使用每個人都在談論的傳統玩具陣容。擠壓模型存在於玩具中——存在於我們的玩具世界中。這與我認為很多人提到的塑料玩具非常不同。而且我不希望我們在玩具的第四季度表現方面與青少年偏離太多。我不知道，肯，還有什麼要補充的嗎？

No, I think you hit it. It's always an important part of the holiday season. And as Joel mentioned, those are our expectations. That's what we've seen historically from a penetration standpoint. And that's what we're expecting to see for this holiday also.

不，我想你中了它。它始終是假期的重要組成部分。正如 Joel 提到的，這些是我們的期望。從滲透的角度來看，這就是我們在歷史上所看到的。這也是我們期待在這個假期看到的。

And our next question will come from Jason Haas with Bank of America.

我們的下一個問題將來自美國銀行的 Jason Haas。

So Joel, you mentioned a few times, and I maybe said on past calls that the business becomes more needs-based as we get into the holiday season. So I'm just curious as you're starting to plan the business for next year, if you think we could see a similar cadence, just this sort of environment continues. I'm curious to get your thoughts there.

所以喬爾，你提到過幾次，我可能在過去的電話中說過，隨著我們進入假期，業務變得更加基於需求。所以我很好奇，因為你開始計劃明年的業務，如果你認為我們可以看到類似的節奏，那麼這種環境就會繼續。我很想知道你的想法。

Let me clarify. You see a similar cadence of the needs base going into the holiday?

讓我澄清一下。您看到假日期間需求基礎的節奏類似嗎？

Yes. I just wonder, as we get out of the holiday season, we entered the spring and summer, assuming that the consumer just broadly still under pressure if you're kind of planning the business this run rate won't continue if we'll see some softening before that it picks up again as we get into the holidays.

是的。我只是想知道，隨著假期的結束，我們進入了春季和夏季，假設消費者普遍仍面臨壓力，如果你正在規劃業務，如果我們看到，這種運行率將不會持續在此之前有所軟化，隨著我們進入假期，它會再次回升。

Yes. Look, I think -- I wouldn't expect us to see softening. I think it's -- it's a very different time period than where the start of the year was. The consumer has clearly said value is important, and they figured out that we're a piece of the value equation. I think what we saw in Q2 where we saw a big slowdown as did most retailers, and that was during the transitory time of massive inflation.

是的。看，我想——我不希望我們看到軟化。我認為這是 - 這是一個與年初截然不同的時期。消費者明確表示價值很重要，他們認為我們是價值等式的一部分。我認為我們在第二季度看到的情況與大多數零售商一樣出現了大幅放緩，那是在大規模通貨膨脹的過渡時期。

Certainly, the war started, and we saw the consumer freeze. They've adjusted their pocketbooks. They've adjusted new lifestyle, and we're part of that equation going forward. Will the first couple of quarters, be more focused on our needs-based categories like consumables and candy, absolutely. But as long as we continue to deliver value, I don't see it going backwards. Plus, look, you're going to get the continued benefit of more conversions as we go into 2023, which is going to more than offset any potential slowdown you're foreshadowing there. hopefully, that gets at what you're asking, Jason?

當然，戰爭開始了，我們看到消費者凍結了。他們調整了錢包。他們調整了新的生活方式，而我們是未來的一部分。前幾個季度，絕對會更專注於我們基於需求的類別，如消耗品和糖果。但只要我們繼續提供價值，我就不會倒退。另外，你看，隨著我們進入 2023 年，你將獲得更多轉化的持續好處，這將遠遠抵消你在那裡預示的任何潛在放緩。希望這能滿足您的要求，Jason？

And our next question will come from Jeremy Hamblin with Craig-Hallum Capital Group.

我們的下一個問題將來自 Craig-Hallum Capital Group 的 Jeremy Hamblin。

Congrats on the strong results. I wanted to ask one to see if, first, just clarifying on the cadence trends. If I'm not mistaken, I think the cadence -- the compares get easier as we get into the back half of December and into January. So first just confirm that.

祝賀你取得了優異的成績。我想問一個人，看看是否首先澄清節奏趨勢。如果我沒記錯的話，我認為節奏——隨著我們進入 12 月下半月和 1 月，比較會變得更容易。所以首先確認一下。

And then the second question would be just you've invested a lot in technology within the stores self-checkout. We've had a lot of retailers that have talked about an increase in shrink rates in 2022. I wanted to get a sense for what you're seeing and particularly as the last couple of quarters here and as we get into the holiday season.

然後第二個問題就是你在商店自助結賬的技術上投入了大量資金。我們有很多零售商都在談論 2022 年收縮率的增加。我想了解一下你們所看到的情況，尤其是在過去幾個季度以及我們進入假期時。

Yes. Thanks, Jeremy. Yes, I think you're thinking about the cadence piece of it, right? If you recall, Q4 last year, January, was up against the stimulus payment from ['20], January of ['21], which was the end of our fiscal '20. And so that was our hardest compare last year. I do think January is now a more normalized baseline from prior years. And it's also our smallest month of the year. But clearly, I think -- and this is all in our guide, too. We expect November was the toughest. There was a big pull forward last year of buying with the whole concern over supply chain.

是的。謝謝，傑里米。是的，我想你正在考慮它的節奏部分，對吧？如果您還記得，去年第四季度，即 1 月，與 ['20] 的刺激付款相比，['21] 的 1 月是我們 20 財年的末尾。所以這是我們去年最難的比較。我確實認為 1 月現在是前幾年更加正常化的基線。這也是我們一年中最小的月份。但很明顯，我認為——這也都在我們的指南中。我們預計 11 月是最艱難的。去年對整個供應鏈的關注大大推動了購買。

But that -- we factored kind of all that in as we thought about our cadence for the quarter. And then as far as shrink rates, look, there's been a lot of talk in the industry about that, I think all that started to emerge in '20 and '21. And so I don't expect '22 to be significantly different than '21. And -- some of that's driven by our price points vis-a-vis some of the higher-end retailers, but it's also kind of already in our -- largely in our base from last year.

但是，當我們考慮本季度的節奏時，我們考慮了所有這些因素。然後就收縮率而言，業界對此有很多討論，我認為所有這些都是在 20 世紀和 21 世紀開始出現的。所以我不認為 22 年會與 21 年有很大不同。而且 - 其中一些是由我們相對於一些高端零售商的價格點驅動的，但它也已經在我們 - 主要是去年的基礎上。

Our next question will come from Chuck Grom with Gordon Haskett.

我們的下一個問題將來自 Chuck Grom 和 Gordon Haskett。

This is Eric Cohen on for Chuck. Inventory growth definitely improved a lot this quarter. I was wondering if you could sort of unpack the drivers of improving growth and then also sort of how you're thinking about inventory as we get to year-end.

這是查克的埃里克科恩。本季度庫存增長肯定有很大改善。我想知道你是否可以解開改善增長的驅動因素，然後在我們到年底時你是如何考慮庫存的。

Yes. Thanks, Eric. Yes, as I mentioned in the prepared remarks, we did see a significant improvement in that year-over-year average store inventory. It actually dropped in half -- you recall back in Q2 was I think the growth rate was in the high 40%, I think 47% down to 22%. The overwhelming majority of that was our strategy of accelerating inventory receipts to get prepared for this holiday season. We didn't want to get caught up in any type of supply chain disruption.

是的。謝謝，埃里克。是的，正如我在準備好的評論中提到的，我們確實看到平均商店庫存同比有了顯著改善。它實際上下降了一半——你記得在第二季度我認為增長率高達 40%，我認為從 47% 下降到 22%。其中絕大多數是我們加速庫存收貨的策略，為這個假期做好準備。我們不想陷入任何類型的供應鏈中斷。

And if you move forward, to the end of the year based on our expectations, we think that moderation is going to continue significantly as we get back to the end of the year. And we'll be -- we should be in a very good position at the end of the year. And probably we're seeing some of the freshest inventory levels that we've seen in years. So we feel really good about where inventory is for us right now.

如果你向前推進，根據我們的預期，到今年年底，我們認為隨著我們回到今年年底，適度將繼續顯著。我們將 - 我們應該在今年年底處於非常有利的位置。我們可能會看到一些我們多年來看到的最新庫存水平。因此，我們對目前的庫存狀況感到非常滿意。

And our next question will come from Anthony Chukumba with Loop Capital Markets.

我們的下一個問題將來自 Loop Capital Markets 的 Anthony Chukumba。

You mentioned that your assisted self-checkout penetration is, I guess, it's in 70% of your stores. And I was just wondering what's sort of the long-term target? And are there any kind of limiting factors to get into 100%?

你提到你的輔助自助結賬滲透率是，我猜，它在你的商店中佔 70%。我只是想知道什麼樣的長期目標？是否有任何限制因素可以達到 100%？

Yes. Thanks, Anthony. Look, the long-term targets, it will probably never be exactly 100%. Some of it is a factor of converting old stores. So I would say our really low-volume stores or still our smaller format stores, we probably aren't going to have the room to put it in. And then our extremely high shrink stores, we tend not to put it in there. So -- but for all intents purposes, that number will continue to float up. It will never be 100%, but it's probably not going to be less than 85%. So somewhere in that range, 85% to 90%. Thanks, Anthony.

是的。謝謝，安東尼。看，長期目標，它可能永遠不會完全是 100%。其中一部分是舊店改造的一個因素。所以我想說我們真正低容量的商店或仍然是我們較小的格式商店，我們可能沒有空間放入它。然後我們非常高的收縮商店，我們往往不會把它放在那裡。所以 - 但出於所有目的，這個數字將繼續浮動。它永遠不會是 100%，但可能不會低於 85%。所以在這個範圍內的某個地方，85% 到 90%。謝謝，安東尼。

Our next question will come from Brad Thomas with KeyBanc Capital Markets.

我們的下一個問題將來自 KeyBanc Capital Markets 的 Brad Thomas。

And best wishes for the holidays here. My question was, Ken, I know it's early to talk about 2023, but I was wondering if in broad strokes, can you give us a little bit more thinking around margins given some of the noise that we're seeing and given the inflection that you're guiding for here in gross margin?

並在此祝您節日快樂。我的問題是，肯，我知道現在談論 2023 年還為時過早，但我想知道，從廣義上講，鑑於我們看到的一些噪音和拐點，你能否給我們更多關於利潤率的思考你在這裡指導毛利率？

Yes. Brad, it's a question you're asking. It's probably on a lot of people's mind. I'll turn this over to Ken here in a second. But just look, this is normally where we wouldn't want to give any guidance on '23, and we tend to save all that for March or maybe a little bit at ICR, but listen, I know you're all trying to kind of figure out your models and you have to also realize we have to get through Q4.

是的。布拉德，這是你要問的問題。想必很多人都有這樣的想法。稍後我會把這個交給 Ken。但是看看，這通常是我們不想在 23 年給出任何指導的地方，我們傾向於將所有這些都保存到三月或者可能在 ICR 上保存一點，但是聽著，我知道你們都在努力弄清楚你的模型，你也必須意識到我們必須通過第四季度。

But maybe I can help you a little bit on the top line to think about that. And Ken, maybe you can think about a scenario that would help them to think about the bottom line. But I think our largest input to top line growth is new stores, and we wouldn't expect to be below 200 next year. And so I think that's in the range as we're thinking about it. We'll certainly have full line of sight to the new store program as we get to March and our year-end call, but Ken help them think about a scenario of how to think about the bottom line.

但也許我可以幫助你在最重要的一點上考慮一下。 Ken，也許你可以想一個場景來幫助他們思考底線。但我認為我們對收入增長的最大投入是新店，我們預計明年不會低於 200 家。所以我認為這在我們考慮的範圍內。到了 3 月和年終電話會議時，我們肯定會對新商店計劃有全面的了解，但 Ken 幫助他們思考一個如何考慮底線的場景。

Yes, sure. And thanks, Brad, for the question. As Joel mentioned, obviously, we're going to get through the holiday season and we'll provide guidance as we normally do on our March call. And again, this is not guidance, but in a scenario format. So in a scenario, say, of a 3% comp for next year. Based on what we know today, Brad, we believe that operating margins should be up slightly, and that's versus our fiscal '22 guidance that we're providing.

是的，當然。謝謝布拉德提出的問題。正如喬爾所提到的，顯然，我們將度過假期，我們將像往常一樣在三月份的電話會議上提供指導。同樣，這不是指南，而是場景格式。因此，假設明年的補償率為 3%。布拉德，根據我們今天所知道的，我們認為營業利潤率應該略有上升，這與我們提供的 22 財年指導相比較。

Now that does include some puts and takes that we've spoken about before. There are some headwinds that we would expect next year around areas like higher incentive compensation, the cost management strategies that we initiated this year, primarily in the back half of the year that we've spoken about that have done, helped us significantly from a profitability standpoint, we're going to be anniversarying those.

現在這確實包括我們之前談到的一些看跌期權和看跌期權。我們預計明年在更高的激勵薪酬等領域會遇到一些不利因素，我們今年啟動的成本管理策略，主要是在我們已經談到的下半年，幫助我們從從盈利的角度來看，我們將紀念這些。

And some of those we're carrying forward and some of those, we can't. So there will be a slight headwind there. And inflation, we're seeing increases in certain operating areas of the business, especially coming on here late in the year. But as you know, we always look and we do a pretty good job of mitigating a lot of those increases based on our [Gale] negotiations and other cost management strategies that we can put into place. So that's, again, just a scenario of what we would see next year if it was a, say, a 3% comp.

其中一些我們正在發揚光大，而另一些則不能。所以那裡會有輕微的逆風。和通貨膨脹，我們看到業務的某些運營領域有所增加，尤其是在今年晚些時候。但正如你所知，我們一直在尋找，並且根據我們可以實施的 [Gale] 談判和其他成本管理策略，我們在減輕很多這些增加方面做得很好。所以，這再次只是我們明年會看到的情景，如果它是一個 3% 的補償。

Thanks, Brad.

謝謝，布拉德。

And our next question will come from David Bellinger with MKM Partners.

我們的下一個問題將來自 MKM Partners 的 David Bellinger。

I appreciate the commentary around Five Beyond and the lift you're getting in that respect, but average ticket this quarter was still down. It was up 20% looking back to 2019, but down on a year-over-year basis. Did that acceleration you saw through the Q3 period in terms of comp, did that have to do more with sort of this quick shift to value? And are you seeing those lower price points? Are they moving at a faster velocity than, call it, $5 and higher?

我很欣賞關於 Five Beyond 的評論以及你在這方面獲得的提升，但本季度的平均票價仍然下降。回顧 2019 年，它增長了 20%，但同比下降。你在第三季度期間看到的那種加速，是否與這種快速轉向價值有更多關係？你看到那些較低的價格點了嗎？他們移動的速度是否比 5 美元或更高？

David, you're asking that through the quarter. Did it -- ask me that question again? I'm trying to follow it what you're asking.

大衛，你在整個季度都在問這個問題。是不是——再問我那個問題？我正在嘗試按照您的要求進行操作。

So the improvement you saw throughout Q3 and an acceleration, did that have to do more with some of your lower-priced items just turning quicker and selling better? Or are you still being that lift from items that are $5 and higher?

因此，您在整個第三季度看到的改進和加速，是否與您的一些低價商品有更多關係，只是轉得更快、賣得更好？或者您是否仍然從 5 美元或更高的商品中獲得提升？

Well, I think it's -- if I had to categorize it, it's probably roughly 1/3, 1/3, 1/3, meaning 1/3 of it is coming from Five Beyond, 1/3 of it is coming from strategic price increases we made to combat inflation and then 1/3 of it is coming from sales mix shift, right? So I think that's...

好吧，我認為它是——如果我必須對其進行分類，它可能大約是 1/3、1/3、1/3，這意味著其中 1/3 來自 Five Beyond，其中 1/3 來自戰略我們為對抗通貨膨脹而提價，其中 1/3 來自銷售組合轉變，對嗎？所以我認為這是...

Yes. David, if you're referring to kind of the typical average unit retail increases there. That's where that's coming from -- that mix.

是的。大衛，如果你指的是那裡典型的平均單位零售增長。這就是它的來源——混合。

It's probably about 1/3 -- each one of those components make up the average unit retail changes.

它可能大約是 1/3——這些組成部分中的每一個都構成了平均單位零售變化。

But from an overall improvement in the business, it's really coming from across the board in terms of a product perspective.

但從業務的整體改善來看，它確實是從產品的角度來看全面的。

And our next question will come from Michael Lasser with UBS.

我們的下一個問題將來自瑞銀的 Michael Lasser。

Ken, do you need a 3% comp to generate some margin expansion next year. Presumably, that's not the new norm for the leverage point given that you'll have some unique expenses rolled back into the base.

肯，你需要 3% 的補償才能在明年產生一些利潤率增長嗎？據推測，這不是槓桿點的新規範，因為您會將一些獨特的費用回滾到基數中。

So what is the new -- what is a long-term sustainable comp point -- comp amount that you'll need to lever expenses? And what happens if your sales are flat in 2023, how much margin compression would you see just given there's a lot of uncertainty in the macro environment into next year?

那麼什麼是新的 - 什麼是長期可持續的補償點 - 你需要槓桿費用的補償金額？如果您的銷售額在 2023 年持平，會發生什麼情況？鑑於明年的宏觀環境存在很多不確定性，您會看到多少利潤率壓縮？

Let me just take the beginning, Ken, I'll hand over to you. I just -- I want -- I jumped in there, and I'll let Ken answer it specifically, Michael, because I don't think the scenario -- I mean, Ken gave you a 3% scenario, but I don't think the scenario everyone on this call should be thinking about is a flat comp. I think clearly, as we get to March and if the world changes again, I'd unwind that comment.

讓我開始吧，肯，我會交給你。我只是——我想——我跳進去了，我會讓肯具體回答，邁克爾，因為我不認為這個場景——我的意思是，肯給了你一個 3% 的場景，但我不不要認為這次電話會議中的每個人都應該考慮的場景是扁平化。我清楚地認為，當我們進入三月時，如果世界再次發生變化，我會撤銷該評論。

But I think with all the initiatives we've got focused on what we told you all at the Investor Day, we're pushing ahead with all those, and we outlined 3% to 5% the next 3 years. We're working our way into that for next year. And I think the 3% is still the right way to think about it. If you take our historical low single-digit, you add in the benefits of conversions, that's what starts to push us at 3% or higher. We're not ready to go any higher than that yet. But I would caution everyone from getting off of a flat comp. And Ken, I don't know if you want to...

但我認為，通過所有的舉措，我們已經把重點放在我們在投資者日告訴你們的事情上，我們正在推進所有這些，我們概述了未來 3 年的 3% 到 5%。我們正在努力實現明年的目標。而且我認為 3% 仍然是正確的思考方式。如果你把我們的歷史低個位數，你加上轉換的好處，這就是開始推動我們達到 3% 或更高的原因。我們還沒有準備好比這更高。但我會提醒大家不要放棄扁平化。肯，我不知道你是否想...

Yes. So Michael, if you take it a little further because you're asking, you're going a little further out in terms of the timing here. Just to remind everybody, 2022 was a pretty unique year. And because of a lot of things that happened this year, they're having an impact on next year, right? I spoke about some of the headwinds, which are really carryovers from this year, reduced incentive compensation.

是的。所以邁克爾，如果你因為提問而更進一步，那麼就這裡的時間而言，你會更進一步。提醒大家，2022 年是非常獨特的一年。由於今年發生的很多事情，它們會對明年產生影響，對嗎？我談到了一些不利因素，這些不利因素實際上是今年的結轉，減少了激勵薪酬。

Some of those cost management strategies and some other things. So there's a lot going on there to unpack. But how I would answer you would go back to our Investor Day where Joel just spoke about our expectations from a top line perspective. And I think one of the things that we emphasized was our ability to lever on a kind of a higher basis, right, in terms of higher leverage given the investments that were behind us, specifically in areas like the distribution network and some other things, technology that we would have an increased ability to leverage as we move forward.

其中一些成本管理策略和其他一些東西。所以那裡有很多事情要解壓。但我要如何回答你會回到我們的投資者日，喬爾剛剛從頂線的角度談到了我們的期望。而且我認為我們強調的一件事是我們能夠在更高的基礎上利用槓桿，正確的，考慮到我們背後的投資，特別是在分銷網絡和其他一些領域的投資，就更高的槓桿而言，隨著我們前進，我們將有更多的能力利用這些技術。

At this point, obviously, I can't provide any specifics and we need a little bit more time for that. But I would think that, that's probably the key takeaway from a profit profile for us longer term and then operating leverage embedded in that.

在這一點上，顯然，我無法提供任何細節，我們需要更多時間。但我認為，這可能是我們長期盈利狀況的關鍵，然後是嵌入其中的經營槓桿。

Yes, I don't see anything longer term, Ken, that has said our leverage tipping point needs to stay up at the 3%, 5% where we used to be. We just got to get through '23 first.

是的，肯，我沒有看到任何長期的跡象表明我們的槓桿臨界點需要保持在我們過去的 3%、5%。我們必須先度過 23 年。

Yes.

是的。

Hopefully, that gives you some color there, Michael. Thank you.

希望這能給你一些顏色，邁克爾。謝謝你。

Our next question will come from Michael Montani with Evercore ISI.

我們的下一個問題將來自 Evercore ISI 的 Michael Montani。

Just wanted to follow up, Joel, you had mentioned about the new store side earlier. Can you give any sense for the remodel conversion front in Five Beyond next year? Can we think 300 plus? And just remind us what the CapEx is for those?

只是想跟進，喬爾，你之前提到過新店面。您能否對明年“超越五個”的改造轉換前沿有任何意義？我們可以考慮 300 多個嗎？只是提醒我們這些資本支出是多少？

Yes. I think a 300-plus number is certainly a number. At this point, we're still putting all that together, Michael. But I wouldn't certainly expect it to be less than 300 at any stretch. It will probably be a little bit north of that number. And what we will lay out for all of you is we get -- certainly, the March call is not only how many, but some of the timing behind that. And then Ken would...

是的。我認為 300 多個數字肯定是一個數字。在這一點上，我們仍在將所有這些放在一起，邁克爾。但我肯定不會期望它在任何時候都低於 300。它可能會比這個數字稍微偏北一點。我們將為你們所有人安排的是我們得到的——當然，3 月的電話會議不僅有多少，還有其背後的一些時間安排。然後肯會...

For the investment or the build-out per store.

用於每家商店的投資或擴建。

Yes.

是的。

Yes, Michael, that varies depending on the type of conversion that's taking place depending on the age of the store. If it's a more recent store, it can be pretty low actually -- down below $100,000. If it's a full versus an older vintage type store, it will cost pretty much the same as it would for building a new store.

是的，邁克爾，這取決於發生的轉換類型，具體取決於商店的年齡。如果是最近的一家商店，它實際上可能會很低——低於 100,000 美元。如果它是一家完整的商店而不是一家老式的老式商店，那麼它的成本將與建造一家新商店的成本幾乎相同。

But the overwhelming majority of those are going to be less than $100,000, right? It's not -- that's about where we're thinking about it. Thanks, Michael.

但其中絕大多數將低於 100,000 美元，對嗎？這不是 - 那是關於我們正在考慮的地方。謝謝，邁克爾。

Our next question will come from Krisztina Katai with Deutsche Bank.

我們的下一個問題將來自德意志銀行的 Krisztina Katai。

Congrats on a really good quarter. I was just wondering thinking about share of wallet. You did mention in your prepared remarks that you're working to leverage data for more effective messaging. You also invested in marketing more heavily in the back half of the quarter. So can you maybe talk about the customer response that you saw? Because it does seem like it could be a pretty meaningful opportunity looking ahead, especially to drive brand awareness.

祝賀一個非常好的季度。我只是想知道錢包的份額。您在準備好的發言中確實提到了您正在努力利用數據來實現更有效的消息傳遞。您還在本季度後半段加大了營銷投入。那麼您能談談您看到的客戶反應嗎？因為它看起來確實是一個非常有意義的機會，展望未來，尤其是在提高品牌知名度方面。

Yes. Thanks, Krisztina. And that's really why we invested in tokenization. And starting with November here is our first month where we have year-over-year statistics on -- at the customer level, we used to really only have it at the DMA level.

是的。謝謝，克里斯蒂娜。這就是我們投資標記化的真正原因。從 11 月開始，這是我們獲得年度統計數據的第一個月——在客戶層面，我們過去實際上只在 DMA 層面擁有它。

But I would tell you -- so we'll have that data going forward, which will answer your question specifically. I think as I look backwards, I really have to use transactions as a proxy for traffic. And we saw transactions improve throughout the second half of the third quarter. And that is a really good sign that says our marketing is working, customers are looking for value and then what we'll be able to start to give all of you as we look at fourth quarter here and beyond is start to see what the mix of our customer is specifically who's coming in after we advertise.

但我會告訴你 - 所以我們將繼續提供這些數據，這將具體回答你的問題。我認為當我向後看時，我真的必須使用交易作為流量的代理。我們看到整個第三季度下半年的交易都有所改善。這是一個非常好的跡象，表明我們的營銷正在發揮作用，客戶正在尋找價值，然後當我們展望第四季度及以後時，我們將能夠開始為你們所有人提供的是開始看到什麼組合我們的客戶特別是在我們做廣告後進來的人。

So I just need a little bit more time so we can get off of kind of the old way we've done it. But short of having a loyalty or a credit card, our tokenization work which started November last year, that which then therefore means this is the first year I've got year-over-year trends. We'll have that starting in '23 for you. Thanks, Krisztina. Go ahead, operator. Go ahead.

所以我只需要多一點時間，這樣我們就可以擺脫以前的做法了。但是除了擁有忠誠度或信用卡之外，我們的標記化工作於去年 11 月開始，因此這意味著這是我獲得同比趨勢的第一年。我們將從 23 年開始為您提供。謝謝，克里斯蒂娜。來吧，接線員。前進。

I'm going to say this just concludes the question-and-answer session. I'd like to turn the conference back over to Joel Anderson for closing remarks.

我要說的是，這只是問答環節的結束。我想將會議轉回給 Joel Anderson 作閉幕詞。

Yes. Thanks, operator. Sorry for jumping on top of you there. Hey, thanks, everyone, for joining us today. And just a reminder for everyone, as always, I think -- and we tried to communicate it today, our purpose here at Five Below is to deliver exceptional value and wow for our customers and value is even more important this holiday than ever.

是的。謝謝，運營商。很抱歉跳到你頭上。嘿，謝謝大家今天加入我們。我想，一如既往地提醒大家——我們今天試圖傳達這一點，我們在 Five Below 的目的是為我們的客戶提供非凡的價值和驚喜，這個假期比以往任何時候都更加重要。

We are extremely confident that we have sourced a terrific selection for this fourth quarter of value products that will wow our customer. We are the go-to destination for stocking stuffers and gifts. And we also believe in value and giving back to our communities. And right now, we are currently with Toys for Tots. This is something we've done over 10 years now. And I encourage all of you to visit our stores and help make a donation and a difference for Toys for Tots.

我們非常有信心，我們已經為第四季度的超值產品採購了絕佳的選擇，這些產品會讓我們的客戶驚嘆不已。我們是購買填充物和禮物的首選目的地。我們也相信價值和回饋我們的社區。現在，我們正在與 Toys for Tots 合作。這是我們 10 多年來一直在做的事情。我鼓勵大家光臨我們的商店，幫助為 Toys for Tots 捐款並有所作為。

Look, in conclusion, I want to thank all of our teams here at Five Below for their continued hard work and making this a great company and brand. We look forward to speaking with all of you after the holidays. Have a great day, and Happy past Thanksgiving. Thank you.

看，總而言之，我要感謝我們在 Five Below 的所有團隊，感謝他們一直以來的辛勤工作，並使這成為一個偉大的公司和品牌。我們期待在假期後與大家交談。祝你有美好的一天，感恩節快樂。謝謝你。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines at this time.

會議現已結束。感謝您參加今天的演講。此時您可以斷開線路。